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A trading indicator is a tool. Whether it is good or not is a result. There are still many processes to be completed. No one will guarantee that you can achieve your goals with the tools.
There are too many requirements to do a good deal, and I personally feel that we still have to work hard at the macro level. The actual influence of technical things such as trading indicators is limited. Therefore, you must have your own trading system or system strategy, which is the biggest support for you to achieve a good job.
In short, a qualified trading system should have the following points:
First of all, it can reveal the main direction changes and turning points of the market.
Grasping the main market direction is actually very simple. It is possible to track the development of the trend with some moving average systems, but it is difficult to change the market direction. Often we can see the development of the trend after the market goes out for a long time, but at the beginning of the change or It is important to enter relative to the position of the launch point. This often requires the application of comprehensive technologies, which cannot be achieved by a single technology.
Second, the application cycle should be clear.
There are many opportunities in different cycles, and any level is effective, which seems to be the case in theory. In practice, there are relatively large differences between different cycles, such as market trends, transaction frequencies, cost losses, and profit and loss tolerances. The mentality of challengers differs, etc.
In a good trading system, the main cycle and the auxiliary cycle should be clarified, rather than exhaustive. Investors must first master a method before proceeding to advanced expansion.
Third, the application logic can be repeated.
We don't just want to make profits in stages, we must make long-term stable profits. This method must grasp some essential laws of the market. Of course, it cannot be all, but only some effective laws are enough.
Fourth, the trading adversity period is moderate and reasonable.
When the trading method encounters unacceptable market conditions, there will be continuous losses, and the chance of winning the transaction will decrease. If the trend trading method basically maintains the 40--50% chance of winning, it is still okay. If it is lower, the adaptability of the method will be reduced, and the execution becomes very difficult. big problem. If further opportunities are selected, the staged winning probability can reach 80% or more, so this trading method is generally a relatively pleasant experience.
Finally, the trading system must be integrated with itself.
What standard is fusion? Most traders may have to grope for many years to realize that this is also the most difficult part of trading. Trading is a process of self-cultivation and self-knowledge.
A set of methods suitable for you should not feel too tiring to use, and you must satisfy your trading desires to a certain extent. For example, you like the pleasure of short-term profits, like seeing profits in your current account, and like accumulating small wins into big wins, then your The transaction cycle cannot be too long, and a certain transaction frequency must be maintained. The winning rate cannot be too low. The disadvantage is that in the big market, it may be difficult for you to obtain a one-time huge profit by continuing to hold or increase your position, and you can only obtain a certain amount of income by continuing to participate in the trend in stages. You cannot easily change your trading mode by being disturbed by some so-called miracles or profiteering stories in the market.
When the above conditions are met, the rest of our time is to continue to apply this trading method and continue to realize its potential. First of all, the winning rate can be gradually improved, and the entry and exit can be more accurate. The profitability of a single quotation can also be improved, the overall profit efficiency can also be improved, and the user mentality will become more and more mature.
In this way, not only technical indicators but also other analysis and prediction tools have become an integral part of your trading system, and it is logical that you have done a good deal.
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Last updated: 08/28/2023 20:37
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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Last updated: 08/02/2023 14:39
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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Last updated: 08/03/2023 21:11