I have struggled for many months to try and find a consistently successful trading system, based on technical analysis. I’m beginning to think that most indicators are little more use than tossing a coin as sometimes they are right and sometimes they are a disaster.
A certain website even suggests that these indicators were originally designed for stock dealing, a singular, speculative market, NOT pairs (currency) trading where one currency can be influenced by half a dozen others!
More recently I started looking at bare-bone candlestick charts with no indicators, only previous highs, lows and ranges. In addition, I keep a close ear on world economic news and follow the economic releases.
What I have found is that I’m beginning to “read” the market and am developing a “feel” for trading. I have had much more success by doing things this way - by looking at the broad picture in the markets and what factors are influencing prices.
My most recent success was going short on the GBP/JPY last Friday. This morning I found I have gained 294 pips! I won’t divulge what the profit was in cash terms but I won’t be retiring yet!
Perhaps this is the way to join the 5% of traders who DON’T go bust!
Anyone else having these experiences??? or is this a sign of Forex meltdown!!!
I ditched them years ago. Price action is all I concern myself with these days. The only “indicators” I look at are the Bollinger Band Width (BWI - which is really just standard deviation) and Normalized Average True Range (N-ATR - which is simply a measure of period range sizes) as objective references of market volatility.
Perhaps this is the way to join the 5% of traders who DON’T go bust!
Anyone else having these experiences??? or is this a sign of Forex meltdown!!!
I borrowed this from the babypips school
There are many systems out there that work, but many traders lack the discipline to follow the rules and as a result, still end up losing money.
[B]Your trading system should attempt to accomplish 2 goals:
Be able to identify a trend as early as possible
Be able to find ways to avoid whipsaws (confirm your trend)[/B]
If it is profitable, then you trade your system live on a demo account for at least 2 months. This will help you get an idea of how you would trade your system when the market is moving. It is a lot different trading live than manually backtesting.
Once you�ve demo traded your system for at least 2 months and you are still profitable, you are then ready to trade your system live with real money. However, you must always remember to stick to your rules no matter what!
If you have a trading system & it works then stick with it.
:wishes:
I have found the Using 1 or 2 indicators works pretty good
especially the RSI and Moving average crossover,
Those get me a direction and then i go with it.
i think getting a FEEL for the market and entering works to.
I use that as part of my PLAN,
I have yet to find the The MAGIC System, that people claim they have
if it was out there i think people would have it by now…
Here is my saying…Practice, Practice, Practice, Practice and then when your
done practicing, ----Repeat again
