My view of Indicators

When I first started trading I used about every technical indicator under the sun. The problem I found was that they had conflicting values. What this means basically is that one indicator would be flagging a buy signal and the next a sell. I was so keyed towards looking at the indicators that I totally neglected price action. Well, after several frustrated months of this I decided to turn them all off and just look at the naked chart. To my surprise I started seeing things clearer. I found a guy named Dave Landry and watched some of his presentations and liked what I saw. It was at this juncture that I new my struggle with indicators was history and I’ve not looked back. I’m not against indicators and if you use them more power to you, but as for me they clouded my judgment and had me focusing on the wrong things. Most do not understand how the indicators they use are formulated and or really how to use them. In fact indicators are all derivatives of price. I think most beginners go through this indicator phase and think they must be the true secret to market success. I would be willing to bet if you turned off everything and just focused on bar charts that after a while you would see what I’m talking about. Problem is most are narrow minded and want to see entry signals every few minutes, thus leading them into the overtrading mode that wipes out hard earned cash.

Trading is a Lonely Task!!

Well it is true... Trading is a loners game and what would you rather do, Sore with the eagles


Or flock with the birds?

Trading Hurtles

One of the biggest hurtles a trader might go through is sticking with a methodology. He/she will try one thing for a trade and then another and another. This often leads to uncertainty and frustration. I think a methodology needs to undergo for some time to prove its strengths and weaknesses. During this testing phase it might not be a bad idea to use a demo account or at least trade with small lot sizes. I think you must believe in what you’re doing and stick with it until the resualts prove you right or wrong. Often it is not the methodology but market conditions that are unfavorable for trading. Remember cash is a position and being in cash is not a bad thing. Remember, you don’t need to trade everyday…

So if you're using a methodology and have not got the results you're looking for, first thing I suggest is to look at the current conditions of the market you are trading. Is it choppy, trending, or moving sideways? Get a small notebook and create a basic journal for you to track your progress. Conduct an after action review of your trades and log it.. Folks, logging your trades might be the best thing you can do…

Get Your Head Right

Is trading difficult? This question has more weight than one thinks. From my personal experience I have seen the Internet plastered with "HOT ENTRY TIPS". Really folks, do the hot entry tips make you a better trader? Check out the web and web forums and it is blanketed with how to enter a trade. Hey great I'm in... Now what?

Well I've been thinking about this today and here are some of my thoughts on this. It is pure hog wash. Think about it. I could take 100 traders and give them all the same entries and I bet you would have 90 different results. Why is this? Well, the reason is everyone views the markets differently. So our state of mind has an enormous impact on every trade we make. Emotions are part of life and in trading emotions often get the best of us. So how do we get our heads right? This is what I feel is the key to successful trading. We get our minds right by following our thought out plan and executing it. We do the best we can when our plan is not working right and our position is going the wrong way. We make our own decisions and do not ask for approval from anyone. We use caution when surfing chat rooms. We identify our risk parameters before we ever enter any trade. http://www.youtube.com/watch?v=Frb88uMX--c