Hi Prasham,
I'm sorry as I've to be blunt in my reply.
I'm 100% sure that you've never seen one or pits where the professionals trade.
By the time you use bucket full of indicators to confirm a trend, it's OVER ! Do you really need an indicator to gauze a trend? I highly doubt that.
I hope the 'picture' in here helps clarify things better:
Well said by Suresh:
I don't trade shares. But my introduction to the trading world was thru share trading. Back then (12 yrs ago), I didn't have a faint idea that money could be made by trading shares. More exactly, I actually didn't know that money was being made & lost every day. And I was very lucky 'coz in search of this particular knowledge, I roamed n numbers of places, different states throughout India and I don't know how many broking houses & pits. I've seen people doing transactions worth lakhs of rupees and sometimes these digits were out of my imagination. I've seen those people who rely on trading for their livelihood.
What I DID NOT see them doing is analyzing charts using a computer leave alone fancy indicators. How in the hell they do it?
They also tracked somewhere around 20 to 50 stocks without a computer !! Is that possible at all?
Yes, I've seen them doing in front of my eyes - day after day - EVERYDAY!!
After couple of years when my grey cells expanded and with further work, I understood something very simple yet, I didn’t realize this for very long:
Traders only make money when PRICES move. The fact that an hour, day or even week has gone by is irrelevant. The only thing that matters is PRICE MOVEMENT. Welcome to Price Action!
Many would read this above 3 lines but only very few would realize the hidden secret in there. It’s simple & well hidden.
If you're familiar with the scene of share trading 20 or 30 years ago here in India, how many traders do you think used computers & charts for analyzing markets?
Were they good & made money? They did far better than many of us in here.
By the 1970s, computers were tracking stocks so quickly and efficiently that people thought that because you COULD track every minute of a stock's activity, that you SHOULD track every minute of a stock's activity...
...ignoring the obvious pitfalls of doing so!
As any experienced trader will tell you, more is NOT always better. And just because technology makes it possible to do something, that doesn’t necessarily mean you SHOULD do it. This is a trap that far too many people fall into everyday!!
How many indicators did you think Nicolas Darvas used? And what was his special gift?
Even you can do it. Just give it a try.
Traders who has experience (atleast 10 yrs) and got lucky for the truth to dawn upon them would know this.
All Trading Indicators Are Lagging.
It seems pretty obvious that the more complicated we make trading, the harder it's going to be to make real money trading shares. For whatever the reason, people just don't seem to listen.
How else would that explain why statistically only 5% of traders make any money? If all these "magical" indicators and automated systems worked, why are there so many people crashing their accounts?
All these overpriced and hyped indicators provide absolutely NO insight to the market!!
So, why are people spending their hard earned money on all this garbage? It's simple. Most traders don't really have a clue what's going on in the market.
They would much rather just fill their charts with indicators telling them when and how to trade.
Why would you want to base your trading decisions off of something that is only telling you what has already happened.
I don't mean to come down hard on indicators. Truth be told that's exactly what I used when I first started trading.
Do you think that the most successful traders in the world are really worried about what a couple of Stochastic lines are doing? I highly doubt that.
The whole point is that they don't need them or any other indicator for that matter. Their own eyes are their best indicator.
If you don't believe me, all you have to do is look at the history of the markets and how traders became successful.
There were legendary floor traders at the beginning of the stock market who became millionaires just by following the movement of the price. They didn't even have charts, much less indicators!!! What's our excuse???
http://www.traderji.com/forex/39166-vdo-no-need-using-technical-indicators.html
I'm not opposed to indicators or TA. It has got it's own place.
Every famous & successful trader has his own angle of view. For instance - Darvas and many others. Do you think they used what majority used? Yet they were highly successful. WHY? B'coz they had their own methods of measuring the markets. As simple as that!
However, please keep in mind: Try to analyze your charts with the least number of indicators. Using 100s of indicators doesn't necessarily give good signals. Watch & be focused on the actual price action!!
You might get a clue of what I'm talking about by going thru this:
http://www.traderji.com/forex/39166-vdo-no-need-using-technical-indicators.html
Trading is buyers (DEMAND) versus sellers (SUPPLY). When there is 10 buyers and 5 sellers what happens after the 5 sell orders are filled and there is still 5 buyers left?? Price must move higher and it naturally does. Demand exceeds Supply. Indicators and everything else clouds amateur trader's minds from this simple truth. It doesn't matter if something is overbought or oversold; if Demand & Supply are imbalanced, price reacts accordingly. Also, do remember that indicators lag!! If two moving averages cross each other, it doesn't mean the price would react to that. The Truth is actually the inverse. The key is to use 1 or 2 indicators (that you understand well) for secondary or tertiary analysis only after you've already analyzed the actual price action.
Have a gr8 weekend
cheers :cheers:
I'm sorry as I've to be blunt in my reply.
I'm 100% sure that you've never seen one or pits where the professionals trade.
By the time you use bucket full of indicators to confirm a trend, it's OVER ! Do you really need an indicator to gauze a trend? I highly doubt that.
I hope the 'picture' in here helps clarify things better:
Code:
http://www.traderji.com/metals/39163-pls-guide-me-day-trading-silver-mini-4.html#post425082
http://www.traderji.com/metals/39163-pls-guide-me-day-trading-silver-mini-4.html#post425228I don't trade shares. But my introduction to the trading world was thru share trading. Back then (12 yrs ago), I didn't have a faint idea that money could be made by trading shares. More exactly, I actually didn't know that money was being made & lost every day. And I was very lucky 'coz in search of this particular knowledge, I roamed n numbers of places, different states throughout India and I don't know how many broking houses & pits. I've seen people doing transactions worth lakhs of rupees and sometimes these digits were out of my imagination. I've seen those people who rely on trading for their livelihood.
What I DID NOT see them doing is analyzing charts using a computer leave alone fancy indicators. How in the hell they do it?
They also tracked somewhere around 20 to 50 stocks without a computer !! Is that possible at all?
Yes, I've seen them doing in front of my eyes - day after day - EVERYDAY!!
After couple of years when my grey cells expanded and with further work, I understood something very simple yet, I didn’t realize this for very long:
Traders only make money when PRICES move. The fact that an hour, day or even week has gone by is irrelevant. The only thing that matters is PRICE MOVEMENT. Welcome to Price Action!
Many would read this above 3 lines but only very few would realize the hidden secret in there. It’s simple & well hidden.
If you're familiar with the scene of share trading 20 or 30 years ago here in India, how many traders do you think used computers & charts for analyzing markets?
Were they good & made money? They did far better than many of us in here.
By the 1970s, computers were tracking stocks so quickly and efficiently that people thought that because you COULD track every minute of a stock's activity, that you SHOULD track every minute of a stock's activity...
...ignoring the obvious pitfalls of doing so!
As any experienced trader will tell you, more is NOT always better. And just because technology makes it possible to do something, that doesn’t necessarily mean you SHOULD do it. This is a trap that far too many people fall into everyday!!
How many indicators did you think Nicolas Darvas used? And what was his special gift?
Even you can do it. Just give it a try.
I've already written this somewhere but I'd like to repeat for convenience of readers here:
Traders who has experience (atleast 10 yrs) and got lucky for the truth to dawn upon them would know this.
All Trading Indicators Are Lagging.
It seems pretty obvious that the more complicated we make trading, the harder it's going to be to make real money trading shares. For whatever the reason, people just don't seem to listen.
How else would that explain why statistically only 5% of traders make any money? If all these "magical" indicators and automated systems worked, why are there so many people crashing their accounts?
All these overpriced and hyped indicators provide absolutely NO insight to the market!!
So, why are people spending their hard earned money on all this garbage? It's simple. Most traders don't really have a clue what's going on in the market.
They would much rather just fill their charts with indicators telling them when and how to trade.
Why would you want to base your trading decisions off of something that is only telling you what has already happened.
I don't mean to come down hard on indicators. Truth be told that's exactly what I used when I first started trading.
Do you think that the most successful traders in the world are really worried about what a couple of Stochastic lines are doing? I highly doubt that.
The whole point is that they don't need them or any other indicator for that matter. Their own eyes are their best indicator.
If you don't believe me, all you have to do is look at the history of the markets and how traders became successful.
There were legendary floor traders at the beginning of the stock market who became millionaires just by following the movement of the price. They didn't even have charts, much less indicators!!! What's our excuse???
http://www.traderji.com/forex/39166-vdo-no-need-using-technical-indicators.html
I'm not opposed to indicators or TA. It has got it's own place.
Every famous & successful trader has his own angle of view. For instance - Darvas and many others. Do you think they used what majority used? Yet they were highly successful. WHY? B'coz they had their own methods of measuring the markets. As simple as that!
However, please keep in mind: Try to analyze your charts with the least number of indicators. Using 100s of indicators doesn't necessarily give good signals. Watch & be focused on the actual price action!!
You might get a clue of what I'm talking about by going thru this:
http://www.traderji.com/forex/39166-vdo-no-need-using-technical-indicators.html
Trading is buyers (DEMAND) versus sellers (SUPPLY). When there is 10 buyers and 5 sellers what happens after the 5 sell orders are filled and there is still 5 buyers left?? Price must move higher and it naturally does. Demand exceeds Supply. Indicators and everything else clouds amateur trader's minds from this simple truth. It doesn't matter if something is overbought or oversold; if Demand & Supply are imbalanced, price reacts accordingly. Also, do remember that indicators lag!! If two moving averages cross each other, it doesn't mean the price would react to that. The Truth is actually the inverse. The key is to use 1 or 2 indicators (that you understand well) for secondary or tertiary analysis only after you've already analyzed the actual price action.
Have a gr8 weekend
cheers :cheers:
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