Tuesday, April 29, 2014

KISS: Keep It Short And Simple

         Most people who trade these days use indicators or oscillators in one way or another, searching for the magic input values to make them work consistently. After losing money and spending countless hours in this effort, they realize that there is no magic set of inputs.

         The reason for their failure is, they are not thinking about the market as simple as market is. The market works simply on Supply and Demand factor. So, they should try to evaluate simple methods or indicators according to it. Use the indicators which can give you clear picture of these kind of basic market parameters.

        Volumes, patterns and price itself can easily provide the complete story of the market, that whether it is in an uptrend or downtrend or moving in trading range. And there are many indicators which can be used to find and use them according to our method.

        The conclusion is using hundreds of indicators without even knowing about them properly could not make you a successful trader. We should first try to evaluate the parameters(like supply and demand) on which we will trade in market and then use the indicators according with them, to find the clear picture.

        

        

No comments: