In the world of trading, simplicity can often be the key to success. While it’s tempting to chase the next big strategy or the latest market trend, there’s a lot to be said for sticking to what you know—especially when it works.
Take, for instance, my experience on July 17, 2024. I was watching $WMT $71 calls closely, contemplating a starter position. My theory was simple: the stock after breaking above the 8 SMA (Simple Moving Average) and make a significant move to the upside as it pushed out of a recent consolidation phase. This strategy had served me well in the past, and I felt confident it would do so again.
So, I put myself in a position to succeed. After opening $71 calls that expire on July 19, 2024, I watched as the trade played out. The result? A remarkable 137.50% gain.
Now, it’s important to note that not all trades will work out this way. The market is unpredictable, and losses are a part of the game. However, this experience serves as a reminder that sometimes, simpler is better. There’s a certain power in sticking to strategies you understand and trust.
In trading, as in life, the adage “If it’s not broken, don’t fix it” holds true. While it’s crucial to stay informed and adapt to new information, there’s no need to abandon a method that consistently yields positive results. So, the next time you’re tempted to overhaul your trading strategy, remember: success might just be a matter of sticking to what works.