Think outside the box | stockbee

5/08/2015

Think outside the box


There are many routine ideas in trading used by traders like support and resistance, breakouts, breakdowns, ranking stocks by momentum , mean reversion and so on. Most of them are in public domain. 

If you can go beyond those ideas and think outside the box then new methods and new setups emerge. Sometime great setup ideas emerge that way.

Couple of weeks ago a member on Stockbee site shared a unique way to trade momentum. He perfected the method over last 3 years and made triple digit returns using it. The entire idea is thinking outside the box and coming out with unique way to find the best momentum stocks. 

 I have over the years seen several examples of people thinking outside the box and coming with trading setups that make you wonder why did I not think of it before.

Thinking outside of box requires building the habit of doing it regularly that will keep your mental pantry stuffed with interesting and profitable ideas. You also need to be surrounded by people who encourage that.

Most of the time it involves taking a concept and playing around with , going in to depth , playing what if I do it this way, doing 100 variations of same ideas and so on.

If your trading is stuck think outside the box. 

No comments: