The majority mistakenly believes that to beat the market and consequently make money, it is necessary to find many strategies. This has led to the belief that diversifying the best available strategies increases the likelihood of successfully navigating this profession. However, as often happens, one ends up never finding anything worthwhile that justifies the time invested; novelty often translates into a waste of time and the money invested becomes irrecoverable because it's lost.
After all these years actively working in the market, investing in creating a new method and developing a new trading platform, I can finally say that there is only one strategy that truly works in the market. The only reliable strategy is related to the price: understanding the right time to buy or sell comes from a deep knowledge of the price value. I've given a name to this strategy: "Price Confidence".
Price Confidence is a strategy that applies to many sectors, not just financial markets. You can apply it yourself, for example, when facing a liquidity shortage during an economic downturn. You begin to evaluate what you can afford and start economizing. Essentially, you start observing the prices of any essential goods and assess which is the most cost-effective. Perhaps you're on the street and begin to understand among all the fuel stations which one is the most convenient, noticing any alternatives you hadn't considered before.
All this focus on numbers shapes the "Price Confidence" in your mind, meaning your mind becomes attuned to seeking business opportunities. Many, when they hear me using unfamiliar terms, convince themselves they understand. However, developing this discipline in the market requires following specific steps to train the mind to intercept real deals. Given that market prices fluctuate within quite wide ranges in very short periods, it's challenging to understand their profitability. As a result, many who think they've understood end up failing.
However, there is a technique I often teach in my one-on-one sessions. The fact that current traders equip themselves with charts, colors, images of time/price charts, and indicators is of no help. The mind must be focused on the price value. And I remind you that the price value is represented by numbers, not by the drawing of a candle, as traditional traders often believe. This is something that most of my audience finds challenging to comprehend.
Developing price confidence means being able to operate in the market without any graphical support. Some time ago, I made a video on this, and I recommend taking a look if you have time. In practice, I hide all Cartesian planes and start trading only by looking at the price table:
Developing price confidence also means being aware that in some sectors, we are not able to make deals. For example, I rarely go grocery shopping. I always delegate because I always come out with an empty cart and less money than when I entered.
It's also essential to understand something that often goes unnoticed. Unfortunately, society has taught many people not to assess negotiation and convenience because it assumes that a salary will be received at the end of the month. Imagine if people didn't receive it and had to rely solely on evaluating prices to make a living. They would begin to understand that without constant liquidity, some things might cost a bit more. This would change their mindset, and they would start disciplining themselves on the price.
But how can these concepts be applied to the market? Firstly, it should be remembered that the financial telematic market is an evolution of any other traditional market, with the only difference being that it is technologically advanced. Human negotiation disappears because, in traditional markets, one often encounters people incapable of assessing a deal. In the financial market, you don't find a competing counterpart but an abstract figure willing to accept any price we offer for buying or selling. This significant advantage has a dangerous backdrop because if you don't know at what price to buy and sell, you end up losing money. People may come up with whatever excuses to avoid admitting that the responsibility for losing money lies solely with them. However, the fact remains that financial markets follow simple and clear principles. If you buy/sell poorly, you lose money. The responsibility for the deal is entirely ours.
The competition being nullified in this sector is another advantage! For example, in other businesses, having customers and suppliers who don't complain whether prices are high or low is pure utopia. In this sector, no one will reproach you if you are making too much money by selling at very high prices or buying at very low prices. The market unconditionally accepts your price. In the financial market, dynamics change completely, and we don't have the limitation of encountering people incapable of assessing the deal we are proposing. This gives us a significant advantage over other businesses. But to be competitive with the market, the absolute best strategy is necessary, that of "Price Confidence".