Focus on few basic setups
Focus on few setups (one or two) and get in to depth of it. You must expand your knowledge of setups but it does not mean you should trade all the setups.
Most setups are rehash of same basic ideas like range breakouts, pullbacks, pivots, exhaustion. Same soda , different color, flavor and bottle. The real key is to understand the essence of a setup and then decide whether your current setup achieves the same thing.You can pick up few tactics.
If you abruptly switch setup then , it is like driving with an unknown vehicle in an unknown country with unfamiliar road signs. Your procedural memory is not equipped to handle that.So you will be lost. And that is why your greatest losses will tend to happen when you switch time frames or change setups.
All setups have context and they work in certain market conditions, sometime when you are not making money, it is not the setup that is the problem, but market phase is. So you have to wait for market phase to align with your setup.
I focus on momentum and breakouts as two basic setup idea and I stay within those parameters. When market is favorable to that kind of setup is when I trade aggressively.
If you study traders who have survived for decade or more and have been profitable over that period, you will see that they trade only few setups and when they deviate from them, they come back to it. They might tweak a setup bit from time to time but the basic idea remains same.
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