Why do we still fail to trade after learning so many trading indicators?

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chief sleep expert at ma jiao institute of technology

Thank you.

The correct process of learning trading should be "learning trading concepts, learning trading methods, and practicing the trading process". But the vast majority of people do it the other way around. They rush into the market and start trading in a daze. Use it well or use it poorly, and then continue to lose money. Many people stop there and start an endless cycle of "losing money-finding indicators-continuing losing money". Whenever you find a new indicator, it is like finding a life-saving straw, which immediately gives you a full position. reason. There are still a small number of people who continue to move forward, start to learn and explore trading concepts, and look back at those trading indicators and trading methods, and they will suddenly feel enlightened.

Many people think that trading ideas are slogans like famous sayings, and they are empty theories that "everyone knows it's right, but no one can do it". This is a wrong idea in itself. Wang Yangming said that "knowledge and action are one", if you don't know it and you can't operate it, that's fine, but you know it, but you think you can't implement it. Just like the simplest one, you can’t trade heavily or frequently. Most losers know to stop losses and trade cautiously, but they can’t do it, and they still have a lot of reasons why they can’t do it, so they do losers Isn't it normal? Why ask why?

In the same situation, under different trading concepts, there are completely different methods of operation. Many people ask, is it a breakthrough or a callback? This trading indicator is very simple, no one will understand what is a breakthrough and what is a callback, but even if you find a breakthrough and a callback, you dare not enter the market, because you do not understand it conceptually. Some people also ask whether to pay attention to the winning rate or the profit-loss ratio? It's also because you only know what the winning rate is and what the profit-loss ratio is, but you don't understand it. Many people say that moving averages and MACD indicators are highly lagging indicators, so you subconsciously think that there is some kind of predictive indicator that can give a signal before the market development? The list goes on and on.

So, you say that you have learned so many trading indicators, but you have memorized so many indicators mechanically, and you have memorized their usage methods mechanically. What are the golden crosses to buy long and dead crosses to sell short? Not to mention knowing and understanding at all. Have you ever studied the mathematical calculation process of various indicators? Do you understand the logical relationship behind the indicators? Does it judge the state of the market by the amount of funds or market sentiment or some other ghost thing? Is it tracking, summative or predictive? How does this indicator understand risk? Is the trading signal it gives based on trend development or oscillating market? What does the signal it gives represent? How to cooperate with different indicators? Where is the passivation interval of the indicator? Why passivation? What happened to the market when the indicator was passivated? ··········There are too many problems that we need to think about. If you have never thought about these problems, don't tell me that you have learned a certain indicator. far away.

Only when you truly understand the full connotation of a certain indicator can you be said to have learned this indicator, and you will know when it can be used, when it cannot be used, and how big the risk is when it appears, so that you can slow down Slowly build confidence in it. Many successful traders only know one or two indicators, but many losers talk about technical indicators well. Why do you think about this?

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master r

Don't always doubt the technical link, learn more about yourself, the deeper you know yourself, the better you can do a good deal.

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草莓kimi

1 All indicators are good, but they are not proficient

This is a mistake many beginners make. They want to learn any indicators they see, but they only learn a little bit, and they don’t have a deep understanding of the deep meaning behind the indicators. In practice, the advantages of indicators cannot be fully utilized. The result is that everything works, but nothing works well, and I don't know how to trade.

2 Believe too much in indicators

After learning a lot of indicators, I found that these indicators are too powerful, and I can make money by using these indicators. But when I was actually doing it, I made money at the beginning by following the indicators. In the end, I increased my position and lost a lot of money. Then I feel that there is a problem with this indicator and it does not make money. In fact, no matter how powerful the indicator is, the winning rate cannot reach 100%. Everything in the transaction is just a matter of probability, so the indicator only increases the winning rate, it is not absolute. We still have to prepare for the loss of each order, so that In order to correctly view the trading market.

3 All indicators have a scope of application, not always effective

When we use indicators, there is a prerequisite for the use of different indicators, that is, the scope of application. If it exceeds this scope of application, the indicator will become invalid. For example, when the KDJ indicator rises unilaterally, it will always be above 80 and passivate constantly. The indicator often dies, but the price does not fall but keeps hitting new highs. It's miserable. Therefore, all indicators are based on the scope of application. In different situations, different indicators can be used to achieve twice the result with half the effort. Otherwise, it will be futile.

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