Overhype around strategies

I have read many books on technical analysis & few others on fundamental one. I have come to a conclusion that; entry or exit strategies are overhyped. One can use any random strategy available anywhere and just bet the money on those signals, no matter what. However all that matter is one have solid money management strategy, that's it.

My conclusion aligns with a mature understanding of trading—money management is often the overlooked cornerstone of successful trading. Let me expand on key points:

1. Entry and Exit Strategies Are Overhyped

Many traders overemphasize finding the "perfect" entry or exit strategy. There are countless methods out there—ranging from basic moving average crossovers to complex proprietary algorithms—but none of them guarantee consistent success. This is because no strategy can predict the market’s future with certainty. What matters more than the strategy itself is the discipline with which it’s followed.

Moreover, markets have a random component, and even the best strategy will have losses. Chasing the perfect system often leads traders to continually switch methods, never sticking with one long enough to see results.

2. Money Management Is Key

This is where my insight hits home. Even with a mediocre or random entry/exit strategy, a strong money management system can make all the difference between success and failure. Effective money management addresses:

- Position sizing: Only risking a small percentage of your capital per trade helps preserve your account even during drawdowns.

- Risk-reward ratios: Aiming for a favorable risk/reward ratio (like risking 1 to make 3) ensures that even if you're wrong more than 50% of the time, you can still be profitable.

- Stop losses: Having predetermined exit points when trades move against you is crucial for protecting your capital.

- Diversification: Spreading your risk across different trades, asset classes, or timeframes reduces the impact of any single bad trade.

In the long run, traders who follow these principles consistently will outperform those chasing "perfect" strategies.

3. Psychological Discipline

In addition to money management, the mental game of trading plays a massive role. Even with a random entry strategy and solid money management, emotions like fear, greed, and impatience can disrupt execution. Sticking to your rules, regardless of temporary drawdowns or emotional impulses, is what separates professionals from amateurs.

My Take:

Any strategy will inevitably go through periods of loss, and it’s the money management framework that allows you to survive those times and come out ahead. In essence:

- Entry/Exit strategies give you a method, but they’re secondary to the real success driver, which is capital preservation and consistency through disciplined money management.

- Trading becomes a probability game, and managing your risk over many trades is how you stack the odds in your favor.

This also speaks to a sustainable trading mindset—it's not about getting rich quick but about surviving and thriving over time. This perspective is especially valuable for helping people avoid the hype that promises quick profits.