My dear 5 followers, today I want to share some revelations during my time trading.
I was looking at some old screenshots and pictures in my computer that are from the time I started trading which was a little over three years ago.
I was suprised to see how many indicators I had on my charts, and I reflect upon it as the total noob stage of trading.
When you start trading you are in love with the very concept of trading and everything about it.
Suddenly your self esteem increased because you know a little about trading, you are now a trader, albeit a terrible one, its still is a sexy thing to say.
And with all this new world of trading, like a child filled with no experience and absolute enthusiasm naturally your attention gets caught by the shiny colorful sexy looking indicators.
And because you understand this indicators, your self esteem goes higher because now you know what they mean and that feels great to understand what looks so complex.
Then you start trading, and you quickly realize that it is not that easy as you thought, because you have no clue of the emotional psychological experience of trading itself.
Eventually either you learn somewhere or you realize that these beloved indicators are actually confusing the hell out of you in the heat of the moment, and you start scaling back.
You read somewhere that less is more , and ''the more simple my strategy the more money I make".
You resist this because the indicators look so good, your identity was tied with how smart you are that you can read them, and the time you spent learning about them.
You realize that you are not a trader because you want to impress your friends about how you understand all these indicators but that you are a trader because you want to make money.
Then you realize that all these indicators are holding you back and you start removing them.
Each one you take off feels like saying goodbye to your best friend, or that exgirlfriend that you hate but you keep coming back to her.
Then once you get rid of them, your results start to improve, so that motivates you to remove some more.
Eventually you are just left with support and resistance, and you look back at your own journey and you look at all these ideas on trading view and you realize how everyone si going through the same journey, we are all essentially the same.
So I encourage anyone reading this to understand that the traders journey is going from complex and fancy to extremely simple and straightforward, how quickly you realize this and go in this direction is how quickly you will achieve success.
The problem with 90% of indicators is that either A)they are telling you the same thing the chart is telling you, or B) they lag price so much that by the time the signal is generated the time to buy at a good price is past, leaving you with poor entries and exits.
In short, indicators are great if you care more about win/loss percentage than returns. As always, position size and risk management trump any trading strategy.
mrwizard9000
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@lordxoren666 the problem with indicators is that if u know how to read the chart they are totally useless and innacurate
Dustbuster007
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I’m just over my first year, I ve profited 23000 from what after six months was a forty k deposit. I should be broke, I’ve done so much stupid crap. I day trade but am beginning to let shares stay. Fridays are hard tho lol. I fly seat /pants style playing captain stock pickers getting harder tho. If I had always properly risk managed and not had huge draw downs I’d have been well over 200% up I think. My weakness is averaging down till I’m way over allocated in square or amzn or recently free port Mac got me fd up. Xle w 400 shares each 7 $ Down. Still got two contracts of the copper minor that haven’t come back and 150 shares of XLE. But I digress every time I think I know what I’m doing the market kicks my teeth in. I don’t use technical analysis but I am trying to work on trending prices with volume and volatility. The only indicator that I use is volume generally, but I would like to get into something like a rescaled range for the price according to the volatility of that particular stock but I’m not a math guy. How can I figure volatility from volume and price or iv?
Dustbuster007
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@Dustbuster007, I should say I don’t use technical analysis indicators I do look at the chart and get a feel for the trend and the direction and use that to decide whether to flush the stock out or average down by more or open a position. I think that tells me more than distracting myself with many different indicators that just seem to do what I’m already doing when I look at the chart
mrwizard9000
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@Dustbuster007, Hi sry I just saw your post, volume is not an indicator, price and volume are the only things that are not indicators, if you want to learn more about volume you need to read Ana Coulings book Volume Price Analyisis is the best Ive seen also I recomend you go over my ideas and see how I se volume, i have some videos I explain it I think,
feiazeig
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Agree with you on the indicators
But you sitll use volume right?
Your take on money management would be interesting..
mrwizard9000
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@feiazeig volume is not an indicator , anything that isnt price or volume is an indicator, money management is very simple, u need a fixed RRR, 1:5 is the best, have a fixed number of trades u can take every day or week depending on ure style, risk 0.5% of your account to make 2.5% dont interfere with ure wins , u can put BE at mid way point
In short, indicators are great if you care more about win/loss percentage than returns. As always, position size and risk management trump any trading strategy.