I started off like many others, attended a course and they taught us how to trade their systems using all sorts of indicators. It seem to work initially, especially when I am not trading full time. I have nothing against indicators, but we were not really taught the limitations of them and less the ability to do proper technical analysis.
Through months of struggling as a full timer, finally realized that price is still everything. Indicators are just dumb formulas trying to help you to gather information, which may not be relevant at times.
It is the relevancy that triggered my mind that trading is all about understanding market sentiments through price actions. The basic concept of support and resistance always work. Able to identify the trend and which part of the trend is a skill that we need to acquire as a full timer. Knowing when to trigger is the key to consistency. And having the skill to manage is how you can be profitable as a trader.
If you want to trade for a living, you need to know what you don't know.
Monday, October 19, 2009
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1 comments:
Going through exactly what you went through I have to say that I agree 100% on this posting. I believe its a path most traders take.
They start from indicators then go on hunting for the holy grail when indicator after indicator fails one time or another.
Not getting out of that cycle will eventually lead to one giving up trading altogether. However, one who realises he/she knows what he/she doesn't know and does something about it will finally find the answer and connect all the dots.
Thanks for sharing.
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