I have just finished Elementary Babypips School. This section was about the different commonly used indicators in trading. They were:
[li]Support And Resistance Levels
[/li][li]Trend Lines & Channels
[/li][li]Ichimoku Kinko Hyo (Still don’t understand this one )
In your valued opinion, what is the best indicator/combination of indicators that generate the most profit for a beginner, and what timescale, as they all seem to be used in different times and circumstances?
Also, does anyone agree that beginners should ALWAYS use 1H and longer TF’s until they gain experience? Just something i read somewhere…
It will be hard to get any consensus here about combinations. That is a good set however and you could make money from them.
In regards to time frames it is better to stick to 1D or 4H at the beginning as less crazy stuff goes on. If you trade on lower tfs if quite normal to get bars which are way way longer than you expect so if you have stops then they are more likely to get taken out.
You need to approach it the other way around as pipwhipand Ivanyo said (even though Ivanyo “absolutely no indicators just support and resistance lines are indicators” is incorrect should be "no indicators except S&R) 1st you need to know what are you trying to achieve with trading. How much time do you have to trade, do you want to sit in front of computer when you trade or set and forget. The shorter the term the more accurate your entries, stop loss and profit targets have to be. The bad news is there is no right or wrong method or time frame as long as you approach it with a trading method, money management, patience and discipline that has the potential to give you more positive results than negatives in the long run. The good news is, there is no right or wrong method or time frame as long as you approach it with a trading method, money management, patience and discipline that has the potential to give you more positive results than negatives in the long run. So the best way to approach long term results, is first what are you trying to accomplish long term by trading. replacing current income, some day replace current job and income, full time part time trader, as an investment to add to current income etc. The more detail you use the better. How much time can you spend trading, do you want to or can you sit in front of your computer or just set and forget. Same thing the more detail the better. Notice nothing so far about how much money you have, patience and discipline? That’s because they don’t matter at this point. At this point you are looking for a trading method that long term will give a chance at more positive results than negative.
So lets use me as an example. I’m a full time trader. I don’t scalp, day trade, swing trade or position trade. I’m not a short term or long term trader. I don’t trade from a technical, fundamental or sentiment perspective. I don’t pick tops or bottoms. I’m a trader plain and simple; who picks profit over picking tops and bottoms and opportunity no matter how it comes; short term, long term, scalp, day trade etc. I use everything and anything that helps me achieve more positive results than negative results long term; indicators, tech, fundamental and sentiment analysis.
My trading method and money management is reflective of me, my situation, experience and goals, and only me and what I want to accomplish. I know that no matter what the strategy and money management I use trading has to be approached with patience and discipline. All of my post is my opinion and my results.It’s my opinion that before you try and pick indicators, first establish what you are trying to achive then choose the way you want to achive it. Good Luck
I forgot to give you this link for Iko Cloud. There is tons of free good info from him. His book is great but if you’re not considering I cloud, I wouldn’t spend any money on books or courses. Like I said ton of free info You can also check out Chris Capri Iko Cloud video. Again great stuff and free. YouTube
OK, thanks gp00053 for the detailed answer, much appreciated Basically I am a full-time security guard, giving me a lot of time to hone my skills, and can spend a lot of time trading and practicing. I would like to be able to leave my job and trade full-time, so I get more time at home with my family. I want to go with the safest trades, which i am assuming are 4H+ methods by everyones standard? I can put a decent amount into the kitty, but ONLY when i am confident that i wont blow it all in a day. Any tips?