Keep It Simple

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This applies to so many things in life and it also applies to anything you might do in trading or investing. Keep things simple.

Your mind only has a conscious capacity of about seven chunks of information. You cannot hold anything more than that in consciousness. Have someone give you a series of 10 two-digit numbers and you’ll probably find that you have trouble remembering more than five of them because of this limitation in capacity. If you attempt to do complex things with the market that require you to use more capacity than you have, then you’ll probably fail.

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