I spent some time checking out news and trying to estimate what tomorrow will bring, but I also spent some time investigating various technical indicators via investopedia.
This brings me to my question: In YOUR experience, what technical indicators do you find to be most useful when looking for potential winners? Assuming you've "been there, done that", and have found indicators that really do help
you to pick winners, which of those indicators are your favorites?
I'm going to set up some custom layouts in TC2000 that incorporate any and every indicator that is recommenced, and
see for myself how they work. While I'm not confident that technicals can predict human behavior, I am certainly willing to give the subject some study. I will put forth the effort needed to educate myself with the aim of becoming a more successful trader.
My IDEAL situation, my GOAL, is to be able to trade for a good living. To me that would be ideal. What makes it (potentially) ideal for me is that the potential exists for me to make money strictly by my own wits. Not having to report for a job, not having to sell a product or service. And not having ANYONE standing between myself and the potential monetary rewards that would come by making the right decisions more often than the wrong ones.
That's the appeal of it. I succeed (or fail) by my own judgements and actions alone.
My second choice would be to pursue my own personal business of building custom designed guitars. I do that,
as a hobby. But there's not enough money in it for me to "go pro" with it although I do offer a professional grade,
high end, boutique level of custom guitar. I could not possibly survive on that as a business, though. At best it is
simply a hobby that manages to pay its expenses, at this point in time. The economy is not good enough to support
such a luxury market as custom built guitars.
CONTEXT is king. You're better off if you focus more on things like multi-time frame analysis, how other instruments compare with the instrument you're trading, support and resistance areas, volume, money management, and simply just the ability to identify if a the market is trending or ranging. There are algorithms out there that constantly test out different indicators and if there is an edge they will exploit that edge to the point that the indicator simply doesn't consistently out preform any other indicator.
Good luck my friend, where there's a will there's a way
Last edited by Itchymoku; August 18th, 2014 at 02:52 AM.
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I've decided to adopt a less aggressive style for the time being. I have given up on (for now) the idea that I have to go in, make a few percentage points, and get out all in the same day.
Looking at the charts for the various stocks I've bought and sold since I started, I've given up opportunities to make money on
nearly every one of them. They've ALL been significantly higher since I bought and sold them.
I've been lucky a few times but I can't count on that.
So I bought into a gold stock (IAG) at 3.96 and set a 60 day GTC limit order to sell it at 4.10.
I might see 4.10 in a few days. I might not. But I expect it to hit 4.10 (or at least 4.08, at which I make 3 percent)
before the order runs out.
I'll take this lower, slower approach while I watch and learn. It also means that until I cash out of either of my existing
positions, I'm done with active trading. I don't have a THIRD account to put into play.
Well, actually I do have a little bit left over in one account. But it's not enough to put into play. I'd have to make
something like 10 percent to cover the fees if I used it.
That happened because I under-bought SEAS. I fumbled the calculator and entered the wrong number of shares.
Be sure you don't change a potentially profitable strategy due to hindsight. The charts you were looking at may have showed you money left on the table simply because of the market we are in right now. If you were profiting on shorting time frame trades, for whatever reason, and decided to change around your style because you were "leaving money on the table," it could turn around to bite you in the ass due to wrongly assessing a situation. Yes, in the specific situations you viewed, you may have made some more money if you held, but will it statistically always prove to be true? Also, you have to ensure your risk parameters are in check before running a new strategy. Expanding your time horizon can be great if it's what you like, but, you will now be more exposed to a greater possibility of unforeseen drastic swings brought about for whatever reason (geo political, international, terror, war, oil, news, etc.)
Where will you be wrong on this call?
Last edited by Limitless100; August 18th, 2014 at 03:23 PM.
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I've decided to slow things down because I need to control my impatience. That doesn't mean that I won't sell at a 3 percent gain because I think it might go higher, but it does mean that I'm not PLANNING on being in and out of a stock in 10 minutes flat.
Will this be a better approach for me? Time will tell. I THINK it will be.
As I write this, I could sell IAG for 4.04 and take 8 cents a share and thus get my 2 percent (before fees)
that I'd be happy to get consistently, BUT I believe that it has room to grow.
And as I write THIS, it's up to 4.06 a share. I am tempted to take the modest profit and run but I made
a plan and intend to stick with it. I think that it will hit 4.10 or at least 4.08 in the next day.
This is a test for my ability to be patient. Since I started writing this litte rant, IAG has hit 4.07 and retreated to 4.06,
and I could simply sell and take a modest profit right now. But as I said, I intend to stick with my plan because
I really believe that my goal is not only within reach, but the way things are acting I might even see them TODAY
rather than tomorrow. It's been pretty active and the upward trend is quite nice.
Simply because it meets my desires for gain percentages. I'm not greedy and will be happy to achieve 2 percent after fees and commissions, any time. At 4.08 I'll get my 2 percent plus, and if it goes up another 2 cents, then I'm around 3.5 percent before fees. I consider this to b a realistic enough goal for the short term and if I get it, I'll be happy to take it.
I'm not trying for multiple percentages in stocks that probably don't have that gain potential in them. But looking at recent daily performance for this stock, I can see it. Particularly with the recent good news that was released about IAG.
Plus, it's a gold stock. I expect gold prices to rise, if not today, then soon.
And I have personal knowledge of the company. I've done subcontractor work for them. But they've never given
me any information that might be construed to be insider information even by the broadest definition.