I’d love your hear your thoughts on the following:
In general, it is highly recommended to create a trading system and then sticking to it. You then go analysing charts and try to find a chart that confirms certain characteristic, which are conform your trading system and thus enables you to either go long or short.
What if. A big what if:
Instead, you go browsing charts like you normally would, but having memorized and studied the various technical buy / sell signals (e.g. chart analysis, elliot’s waves, candlesticks patterns, etc.) you would go looking at charts to see whether or not you can find any one of those buy / sell signals.
To me, these two approaches seem different in the sense that one allows you to be flexible (analysing, looking for any of the various buy / sell signals), whereas the former ‘‘forces’’ you to look at charts from a very specific and narrow point of view, where you’re looking for a very specific set of parameters and is thus a more rigid approach.
In a constantly changing market place, wouldn’t the latter (flexible approach) be more sensible?
Would love to hear your thoughts, I’m still rather new at this!
When you create your system, if it will turn out to be profitable, you will have accounted for all that. You need to know what you are looking for so you can go out and find it. There are many ways to profit from trading so you need to pick one which suits you best.
So, your approach would be to go about analyzing charts, then experimenting with various techniques and then the ones who prove to be the most successful, formulate a strategy based on that. Am I correct?
Whereas, I thought you create a strategy first, then go about analyzing charts and executing it and seeing if it is successful or not. If not, adjust, try again until you find a strategy that is successful and then sticking with it.
Interesting! I thought the second approach was more common, might’ve been wrong though!