Hi Traders
KEEP IT SIMPLE! Don’t think that the more indicators and patterns you use the more profitable you will be. Trading strategies are simple BUT original. I learned through time that the true gems in the market originate from simplicity. This is an important concept, don�t dismiss it…
yup yup… 90% of traders would benefit from taking every squiggly line or oscillator off their charts and putting trendlines on swing highs/lows… I bet most would outperform their complicated rule sets by miles!
The pros use price action, not indicators… the sooner you accept that and move on the better! The dream of having a little arrow pop up to tell you when to buy or sell is the fantasy far to many, chase far to much, to far worse results.
I think the real gem in indicators is that they enforce discipline, and are easy to make trading rules around. I believe they can make a profitable trader, even if the edge is relatively poor, since the consistency is there, and that’s usually the hardest obstacle to overcome. I think the real problem is that most people that are drawn to FX do not really want to become traders, but rather want to turn quick profits with easy and without thinking. That attitude won’t work for any system, either mechanical or discretionary.
But of course I agree with you, we’re willing to take the more challenging path in order to get the best results later on! Indicators are a crutch that many people would defend to the death, but if it’s making them profitable when they otherwise wouldn’t/couldn’t be, then it’s not really my call to knock them for it.
I’ve stripped my charts down to candlesticks and horizontal lines (at S&R points that I believe are significant), and I keep up on all the economic reports and the general “buzz” about the pair I focus on. I want to study the 4hr chart and learn how to read the story that the market tells and see how it reacts to certain events and S&R points. My theory is that if I can learn HOW the market moves, rather than worrying about where it’s going next, I can be far more profitable in many different situations. Currently focusing on USDJPY and am thoroughly enjoying the new clarity and simplicity.
If there was a little arrow popping up to tell me when to buy or sell, I wouldn’t be as compelled and intrigued to learn this. It just wouldn’t be as cool. Anything in life that is worth while takes effort.
I don’t know if you’d classify this as disagreeing, but it took me a full two months to learn the systems I’m using, very complicated, but now it’s pretty simple. Learning it was the complicated/hard part. Tons of calculations and reading/rereading to understand. For my main trading system I use two indicators, and I think you’d be hard pressed to rival them, not going to beat them sorry. J. Welles Wilder was a genius.
do you mind sharing briefly what the system is like?? i’m trying to find a good trading system myself but haven’t been able to come up for one so far sigh
Don’t let the difficulty of learning it put you off, it’ll be well worth it.
so its a book you have to buy…