I hope I don't belabour this idea, but I know from personal experience some traders feel they stay sharp and or perform better with others watching them trade OR by teaching others.
e.g. Imagine a professional musician that teaches people on the side.
Here's an interesting excerpt at the start of one of the elite journals on BIG MIKE:
Gary's CL method Hey everyone,
I would like to start with a simple statement of the primary idea of this post is to help me. Yes, I said me. I hope it will help you as well, but, to be honest, if it helps me and not you, then I am still happy.
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).
I can't help you into consistent profitability; only you can.
The following 3 users say Thank You to Turtrend for this post:
This discussion peaked my interest, so I plunked down the $299 and bought the eminisniper ebook. Hey, in the last 6 years I have spend thousands, three hundred to top it off is not going to kill me.
Studied it last nite, method is designed around two EMA's and a popular momentum indicator and most inportantly,
two specific price patterns for entry. As simple as it appears on the surface, it may just be very effective after all, will have to sim trade it next week. Interestingly, it is no more simpler than what BIg Mike is currently using (multiple moving averages)
We all have been guilty of this; thinking we have been ripped off when we pay $$$ for a system that consists of a few simple standard indicators. What I have come to understand is that indivually, these indicators may fail us however, in the right combinations and approprate setting for the market we are trading, they may prove to be amazing!!!
Its sort of like the simple ingrediants in Pizza; flour, cheese and tomatoe sauce, but in the right proportions this can turn into an award winning product
The following 3 users say Thank You to bobbyacim for this post:
That's where in my opinion you are getting it all wrong. It's not a question of settings or indicator combinations. Here is a place to spend your money which should bring you a bit more than s simple pizza:
Yes, for some it can be the right combination of indicators!!! Indicators are based on price action. They are showing price action in a very objective and consistent way. The way an indicator shows you a double bottom is going to be consistent yesterday, today, and tomorrow. The way a human being sees a double bottom is subject to the entire complexity of his/her psyche from one day to the next.
With indicator aided trading, what you need to do is find the right indicator, or combination of indicators, and understand how they relay price action to you. They relay price action based on the formula they use to process that price action, just like the human brain processes the bars that they see on the screen. Looking at the picture my Moving Average/RSI/Stochastic indicator combination are presenting to me, I can tell you exactly that the market, is in a strong impulse move, I can tell you the market is chopping around, I can tell you the market is giving you a double bottom, moreover, I can predict to you with pretty good accuracy that it is about to give you a double bottom.
I have yet to know a pure price action trader. A moving average is an indicator, if you just have a moving average on your chart, then you are using an indicator in your trading. The bottom line is, you use whatever can give you an edge. If my dog starts barking every time the market is about to tank, I can bet you I'm sitting him next to me when I trade
The following 4 users say Thank You to monpere for this post:
monpere, i agree with you to some extent but from my perspective i believe it's easier to trade an instrument without a ton of indicators. However, there is nothing wrong in using indicators. Judging by the high level of failure in the world of trading, i suspect the search of indicators, right settings or combinations is part of the problem. I think learning to read price action is not the hardest thing but rather learning to cope with the forces within yourself that influence your thought, behavior and response to external patterns is as important then money management.
Btw, why do you feel the need to use an indicator to anticipate the formation of a double bottom or top which is probably he most easiest to thing to do or see ?
I was using the double bottom just as an example that most people are familiar with. I do also agree that most people fail because they are searching for an indicator to put on their chart, and instantly get 95% winning signals without understanding how the indicator moves, and what each of it's different patterns convey.
I spent 3 years studying the MACD until I knew everything about it inside and out, I realized that I actually only needed to trade the histogram patterns displayed as a line, and did not even show the other MACD elements on my charts. I also realized that the MACD would kill me with horrible counter trend divergence signals in a strong impulse move. I started looking at the RSI as a filter, and realized that the RSI would filter out the majority of those bad divergences and keep most of the good divergences, so I dropped the MACD, put my required time in getting intimate with the RSI, and now that is my indicator of choice, but I only look at the RSI average line, the true RSI line conveys no useful information to me, so I don't display it on my charts. I don't know about other traders, but I trade pictures of my indicators, I have 3 or 4 pictures that, when I see my indicator combination forming one of these pictures, I don't hesitate to pull the trigger. I only need to look at my charts for 5 seconds before a bar closes to know if I need to grab the mouse or not.
I had the same process with the stochastics. I can tell you what all your Stochastics lines will look like by changing each one of the Stoch parameters separately, because they each affect the behavior of the stoch in a very specific way. I think we have an instant gratification society and we expect the same of our indicators, but that does not cut it in the trading world. You have to get to know your indicators better then you know your spouse
The following 9 users say Thank You to monpere for this post: