I appreciate all of the responses and I am sure everyone has their own way. I will certainly test using pivot points and maybe Bollinger bands, but I will also test different bits and pieces to see what works for me. I am just trying to speed up the learning process by asking questions. What were your thoughts on using fibs or pivot points?
HAL 9000
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It's funny how the process of learning how to trade seems to be a very unique experience. The way that we discover certain indicators, certain advice, articles, videos, books etc..... It comes at us in many flavours.
Make sure that you keep only the flavours that really do it for you and not because some bloke tells you it's the dogs doodahs. You're trying to construct a plan that you'll be looking at and executing over and over so avoid complicated and over convoluted strategies. Simple, clear and straightforward ideas work very well in trading.
Maybe start off with indicator N°1 "the horizontal line" and incorporate right from the beginning some money management rules, and see where that takes you.
Good luck.
Make sure that you keep only the flavours that really do it for you and not because some bloke tells you it's the dogs doodahs. You're trying to construct a plan that you'll be looking at and executing over and over so avoid complicated and over convoluted strategies. Simple, clear and straightforward ideas work very well in trading.
Maybe start off with indicator N°1 "the horizontal line" and incorporate right from the beginning some money management rules, and see where that takes you.
Good luck.
Hi Dallir, Trading is not about "timeframes". It goes more with understanding the market participants. Take into account that many forces influence the market in the long term and in the short term. You need to find levels of Supply and Demand, not MA, they lag price movement. Nonetheless they are helpful at spotting trend and sideways movements. try to do the following or at least testing it. If you are trading cash Forex. open up a demo account in Futures with any broker, set your chart setting to 7 am London time to 5 pm London time. This are the hours where forex move, so this hours will give you clear leavel of supply and demand, work your way from daily charts, to 240 minutes, then 60 and finally 15 minutes charts. When you are on the right track they EUR/DOLLAR will only give you 3 to 4 signals at max, each day in that hour span, more than that and you are overtrading...
cheers
Dan
cheers
Dan
B
Black Swan
The post above is pretty spot on.
Different people tend to find different systems and different combination of indicators etc to work differently for them. I think it comes down to our inherent nature, our appetite for risk and a few other factors.
With that being said, if a trader finds that he is profitable by filling up his chart with so many indicators until he can barely see the candlestick charts then who are we to say otherwise.
But it doesnt work like that because price movement is shown in the primary candlestick chart. That is where the action is happening and it pays to have our eyes on it. Indicators, especially the ones that open on their own window tends to draw our attention from what really matters.
Finally, its not as simple as, Stoch is in overbought so we sell when it crosses below 80 and buy when it cuts above 20 from oversold or the faster sma cuts the slower sma upwards, thats a buy and vice versa. Its not so straightforward. The smas and emas work, but you need to read it just like how u read candlesticks. You cant trade by simply buying when you see a bullish candle forming or sell when it starts a bearish formation.
Pick a TF that you are comfortable with. This TF has to match your appetite for risk i.e. the size of your SL. I trade forex and I follow the H1 chart cause with the things I use to trade, its reasonable to expect an entry with a SL of about 30 to 50 pips per trade on that TF.
But that doesnt mean I wont take a trade on a smaller TF if I see an opportunity as this would mean an earlier entry with an even smaller SL. On the other hand you cannot ignore the higher TF from your primary TF also cause you dont want to be trading against market bias.
So its not all so straightforward. Atleast not until you find your feet.
And finally finding a system to trade is not that important. You should look for someone to teach you the method and nuances of trading that system. Having a tool and having someone teach you the right way to use it makes a major difference.
Good luck to you.
P/s Dont bother parting with your money if someone tries to sell you robots, E/As or "donate" your cash for magical indicators that are suppose to tell you when to buy or sell. They dont work.
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