Keeping It Simple by Eric Wright

Over the last couple years that I have worked at NeUventure and have answered students' phone calls, I have seen many students struggle with keeping it simple.  Often times our brains are programmed to think that things cannot be that easy.  We will learn a new skill, implement it, and then something goes wrong and we feel like we have to completely change it immediately because it does not work.  We look for something more to add to the formula that will make it better and before we know it, we have a thousand things bogging us down. 

 

I have seen students go through this and weigh themselves down so much with formulas, ideas and information that they have forgotten about the two simple lines: Support and Resistance

 

Recently the coaches noticed a student (let’s call him Greg) who called us every day to ask us questions. He started weighing himself down with so much information that it was complicating his trading. 

It was getting to the point where he had so much information to process that he had gotten away from all the principles that NeUventure teaches.  Then all the sudden we quit hearing from Greg.   He quit calling.  Our first thought was maybe he quit trading; maybe he is taking a break.  We wondered what was going on. 

 

As the coaches’ curiosity started to build as to what happened to him, one of us saw him at a seminar and had to ask how things were going.  

 

To our surprise, Greg said that he was doing quite well.  With a puzzled look on our face, we said “Really? What are you doing different? What has changed?” 

 

Here was his response as he pulled out his telechart and showed us a picture of a stock that he had been looking at:

 

“Let me show you!  You see all these lows down here….I just string a line across those lows.  You see these highs right here…..I just string a line across all those highs.  THEN…..when it hits those lows….I BUY!  And then…..when it hits those highs….I SELL!”