Super Gann Trader Academy which conducts share market courses in Mumbai, offers free trader awareness lessons.

Can simple rules based trading make you rich?

Yes it can, simple rules can be very effective even in complex environment like stock market.

Some simple rules in action:

  • When crossing the road, our brain does not concentrate on every object on the road. Adding information like eye color of people driving their vehicles or walking on the street to our consciousness will confuse us and make it more difficult. Instead, it removes all non-threatening information from our awareness and concentrates on moving objects on road. It follows one simple rule.“Avoid collision with big objects in motion.”
  • Dieters who followed just one simple rule,“Use smaller plates for dinner”, lost weight. In contrast, people with no rules had no weight loss at all.
  • Burglars used a single rule to pick their target (unoccupied houses), “Avoid houses with a vehicle parked outside.”
  • Investors avoided risk of financial ruin by following one simple exit rule: “Sell if an investment goes down X % in value from its peak price”. This simple rule allowed them to cut their losses and let their profits run.

Simple rules work in this complex world because they can do following very well.

  • They allow us to be flexible to pursue new opportunities while maintaining some consistency of results.
  • They can produce better decisions. When information is limited and time is short, simple rules make it fast and easy for people, organizations, and governments to make sound choices. They can even outperform complicated decision-making approaches in some situations.
  • Simple rules allow the members of a community to synchronize their activities with one another on the fly.
  • Simple Rules also come in handy when time, convenience, and cost matter and information are incomplete.

Simple rules can be tested. When we follow rules we can collect data of their results and subject them to statistical analysis. Random behavior in complex environment cannot be subjected to any testing.

Effective simple rules have following properties.

  1. They are limited to a handful. Capping the number of rules makes them easy to remember and maintains a focus on what matters most.
  2. Simple rules are tailored to the person or organization using them.
  3. Simple rules apply to a well-defined activity or decision process, such as, prioritizing injured soldiers for medical care or investing.

By limiting the number of guidelines, simple rules help maintain a strict focus on what matters most, while remaining easy to remember and use.

We don’t use simple rules because they are the best. We use them because they do the job.

Our trading system is based on simple rules which anyone can follow. They allow us to act in time with the available information and give superior results.Our trading system is tested to confirm that it is profitable. Test results will be shared with you.

Trading based on profitable trading system is a method of compounding your current savings to pay for your kid’s education, your dream vacation or early retirement in future.

We train investors and traders on use of these trading systems and help them to setup a profitable trading business. Refer to this link for more details on share market training.