Technical Analysis has been my best tool in forex trade but I find it very difficult to make consistent profit. Am I trading amiss? Please help to advise on the best tools to used for consistent profits. Thank you.
For most intra-day and long-term traders, TA is the only method that allows them to find target forex pairs and to understand where to enter long or short.
But whatever method they choose, and whatever TA features they look for, most private retail traders risk too much of their account capital in % per trade.
Taking too much risk per trade is especially likely to damage your account if you are taking low-probability trade such as trend reversals. These are actually quite rare but the attraction of massive gains when you’re right makes them easy strategies to “sell” - they look great on a chart. But most trend reversal strategies will have far more losers than winners and the losers can be large, especially if the account is small or if a stop-loss is not used.
TA works but keep simple, q lot of the time its the trader not the plan as you profit and take it to quick or refuse to admit when wrong and take a loss. Control your mindset and the results get better
To my mind, TA is extremely important. Actually, it provides you with an additional information necessary to make trading decisions. And it is also very flexible - you can use the same principles for various instruments on different markets.
Speaking about special TA tools I would like to mention Visual Strategy Builder - a quite simple tool for building TA-based strategies. Its interface is user-friendly so even a newbie trader would be able to manage with it and create his own strategies.
If someone knows other useful tools for TA traders, please kindly tell us.
I think you chose right path to gain trading expertise but success doesn’t come quick and what is more important it is elusive concept in trading. You can’t find holy grail, any system becomes obsolete and losing in time because market conditions are constantly changing. I think you need to spend more time on studying technical analysis patterns, naked price action, differences of price behaviour in different timeframes etc. Remember that your results will improve gradually (not in sudden shift) and learning curve isn’t likely to make abrupt positive changes.
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