![]() It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.īut that’s a topic for another time. Sure, it makes you feel good to win, but a ratio of wins to losses is 100% inconsequential on its own. I always find that odd considering a high win rate is entirely unnecessary. What’s curious is that they all seem to be promoting the same thing – a high win rate. In fact, if you’ve been in the business for a while chances are you’ve seen quite a few of these offers. You’ve no doubt come across one of the sales pages for a Forex trading robot, or Expert Advisor (EA) as it’s called in MetaTrader. It has the most direct relationship with market participants and is the least lagging of the bunch. That’s just my opinion but having been involved with trading since 2002, I can tell you that there’s no better indicator than raw price action. Even I use two moving averages which we’ll get to later in the lesson.īut to rely solely on them without first learning how to read price action is a mistake. I’m not saying all indicators are bad or that those who use them are wrong to do so. And believe me, I went through a few between 20 to get where I am today.ĭon’t get me wrong. When I think back on the experience today, it amazes me that I didn’t blow more trading accounts. It was for me, and my deteriorating account balance was proof. I was just clicking buttons because a few squiggly lines said it was time to buy or sell. More on this shortly.īecause of the indicators I was using back then, I wasn’t getting to know the charts or how price ebbs and flows around key levels. After all, I didn’t know what I didn’t know.Īlso, that path led me to something much better. I was also following the herd blindly, hoping that I’d stumble across some magical combination of indicators that would make me wealthy.īut I can’t be too critical about the path I chose. Of course, the underlying chart didn’t matter to me at the time because I was relying on a random set of lagging indicators to make decisions for me. ![]() That doesn’t sound like a trader to me, at least not one who’s going to make money in the long run. It could have been the EURUSD, GBPUSD, AUDUSD or any other currency pair. The chart underneath it all was inconsequential to me. I mean sure, I was technically buying one currency and selling the other.īut every decision I made was based on a signal from a group of indicators. I wasn’t really buying and selling currencies when I was using indicators many years ago. I’ll also share what I use in their place.Īs always, be sure to leave any questions or comments at the bottom of this post.Īs a currency trader, what do you buy and sell?Ĭurrencies, of course! That may seem like a silly question to ask a group of Forex traders. In this post, we’re going to take a detailed look at why I decided to scrap technical indicators. You may keep one or two as I did, but for the most part, they’re an unnecessary burden.Įverything you need to trade successfully is already on the chart it has been the whole time. Well, if your journey turns out to be anything like mine, you will dismiss the idea of using indicators as buy and sell signals. With an infinite number of indicator combinations, how on earth are you supposed to find something that works? ![]() There are even businesses that do nothing but custom code indicators for clients.Īnd if you ask me, it’s closer to being part of the problem than the solution. Other trading platforms offer similar languages. Proprietary languages like MetaTrader’s MQL have made it relatively easy for newcomers to design anything imaginable. Useful? Well, that’s another matter entirely.īut of all the financial markets, Forex is arguably the worst offender of overutilizing indicators. It doesn’t matter whether you’re trading stocks, commodities, futures or any other market technical indicators are a common theme. They can range from a simple moving average to a complex array of algorithms. Technical indicators are no doubt a favorite topic in the financial markets.
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