Hey Everyone,
Ever since I began my trading I always believed in the K.I.S.S formula (Keep It Simple Stupid). And so I don’t use any indicators. I purely look to the charts. I Use the charts for trends, patterns, and Support/Resistance Levels. I can’t help but think whether i’m missing out on better trading results or not.
I was hoping someone can give me some insight on whether my strategy is weak, therefore needing some sort of indicator/s, or if its good the way it is.
Thanks for your help in advance.
Share some recent trades you made.
Define “trends” “patterns” and how you mark and interpret S/R levels.
As a price action trader, I don’t have a system, but I have a method to trade the markets, I trade breakouts (BO), false breakouts (FBO, are my favourites), patterns, failed patterns (my other fav) and failed failed patterns. The reason I like FBO and Failed patterns is because they are a lot of trapped traders when patterns fails…and trapped traders panic, thus closing their position quick/SL hit, thus fuelling price to go in the opposite direction to the BO. I believe this method of trading can be applied to any markets that has price and are traded by human beings. I believe that price movement patterns are being repeated. They are recurring patterns that appear over and over, with slight variations. This is because markets are driven by humans – and human nature never changes.
“ Stocks are driven by human beings and human beings never change. Wall Street is always the same.” – Jesse Livermore, Legendary Trader
I am not here to argue with people…saying indicators doesnt work bla blah…what I know is that there is no right or wrong way to trade the market…as long as you are profitable, producing consistent results with what ever system, strategy or method you use, stick to it…there are a million ways to skin a cat…and they are a million ways to trade the market, millions of traders, but we all have one goal…to make mny.
Trading is a business, so it should be treated as one…like any other business, the first thing you need to do before yu place a single trade is to have a business plan. A Trading/BP is a complete set of rules that covers every aspect of your trading life. For those without a business plan, there is a template of a BP.
Be more specific. Do you put in stop buy entry orders just above a 10 minute high? A 40 hour high? A 10 day high? Do you look for the price to hit that level two or more times before calling that level “resistance” or “support”. Be very specific. Show a chart if you can.