Rohit Musale, CFA
How Professional Trading is Similar to Professional Cricket
Professional trading is very similar to professional cricket.
Let me give you an example.
One of the greatest cricket batsman of his time was, Sachin Tendulkar.
When he would come to bat in a game, he would play with a range of shots.
For example, he would play the straight drive.
He would play the cover drive.
He would play the pull shot.
He would play the sweep shot.
He would use his wrists to play on the leg side.
So, he had a range of shots that he could play to score his runs.
Similarly, in trading, you could use a range of tools to enhance your trading success rate.
I have always recommended not to use more than three indicators on your charts.
Three should be more than enough.
And out of those three, one has to be Bollinger Bands.
So, I have made the choice easy for you.
Now you need to choose only the remaining two.
Now let's say, apart from Bollinger Bands, you decide to use the RSI and the ADX.
You, as a professional trader must know all the applications of Bollinger Bands, all the applications of RSI and all the applications of ADX, so that when you actually go to the market chart to trade, you can use a combination of these three indicators to identify the highest probability trade setups.
Just as Sachin Tendulkar would have practiced his shots thousands of times in the nets, you will have to practice each of these indicators countless times, to become better and better at it.
For example, you should take a lot of trades based on the movement of the Bollinger Bands.
You should have taken a lot of trades based on the movement of the RSI and the ADX for you to have built the expertise to use these indicators properly.
That only comes from practice.
There is no way you can master trading in just a few months.
Sachin Tendulkar did not become a legend by practicing in the nets for one or two years.
He started at a young age and played for many years.
Similarly, if you look at the similarities between trading and cricket, the earlier you start the better.
The more practice you do, the better.
The more applications you know for each indicator, the better.
At the most, if you want to add another fourth indicator, I recommend a simple moving average.
But do not go beyond four.
It would be too much to analyze on the charts.
Keep it simple.
Spend more time practicing on live charts.
Keep your position size low.
Control your risk.
Trade safely while you are learning skills.
Do not play around with too many indicators.
Thank you so much.
Rohit Musale, CFA
14 February 2023