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Putting together the problems of bad trading and indicators for analysis, there are the following reasons:
The indicator should be used properly, and the usage of the indicator should be determined according to the characteristics, advantages, disadvantages, variety adaptability, and superimposed screening signals of each indicator.
For example, the United States and Canada sometimes show a good trend, so the oscillator will naturally fail temporarily. When the trend ends temporarily and the high level continues to fluctuate, the trend indicator will be invalid again. Therefore, a single indicator cannot currently solve the problem of compatibility between trends and shocks.
Its essence is: the market trend produces buying and selling actions based on the psychological preferences of the participants. Due to the balanced and unbalanced changes in buying and selling power, the price will include a random interval test. If the price balance is broken and the power is too disparate, it will go out of the trend, so A single indicator cannot solve the profit stability, with strong randomness.
Can the superposition of multiple indicators solve the problem? able.
But it should be noted that I do not recommend indicators➕indicators, because oscillators plus trend indicators, the signals are contradictory, and the superposition of similar indicators is meaningless, and it is also lagging and random. It's indicators ➕ others. Other contains analysis methods other than indicators.
For example, shock or trend indicators➕pattern➕Fibonacci can effectively improve the effectiveness of the signal. Or, volume price analysis, naked K➕supply and demand analysis➕trading volume➕time can also capture many opportunities with high odds.
If multiple indicators are used, the winning rate is increased, and the system is formed, can the transaction be done well? Not necessarily, it still needs a process.
The effectiveness of a system cannot solve non-system interference, that is, market information, and personal factors interfere with thinking consciousness, resulting in deviations in system execution. In layman's terms, it is called poor execution.
For example, a trader is executing the system, and suddenly another opportunity is in front of him. He may not wait for another three months, and according to "my experience", he has done similar market before and knows how to grasp it, so he operates without a system When the stop-loss and profit margins are not clear, coupled with the awareness of risk preference, it is bound to be easy to lose money or fail to grasp the opportunity. What is more harmful to traders is that they start to accumulate negative emotions because of failure to do well. In turn, subconscious interference will be generated to the subsequent execution of the trading system, resulting in the failure of the system operation.
How to solve this problem, the way of scientific thinking cycle to solve interference factors plus enough time training. I will have content on how to train in the future. Because of individual characteristics and knowledge and cognitive boundaries, each person's training content and methods are also different.
So to summarize my reasons:
1. Indicators are unique to trend and shock adaptability.
2. The market often has a stronger party to intervene in the original correct trend, also known as the reflexive theory, which comes from Soros.
3. Overlay indicators ➕ other tools, with the function of improving effectiveness. The pro-test is effective.
4. The characteristics and adaptability of the varieties are not always adaptable to the indicators. Screening is required.
5. The elimination of personal non-signal interference factors is the biggest enemy of individual traders, and it is also the secret key.
6. To make a good deal, you need to train your intelligence and mental strength like an assault force. You can watch how Hu Ge, the TV drama pretender, trained.
A 13-year old gun, sharing practical experience with you.
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Last updated: 08/24/2023 19:31
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