Trading The Market: Keep It Simple Stupid!

By: James Lee

It seems like each day there is another complicated trading system in development. I am quite surprised to see the trading population dig into more complex methods combining various indicators to profit from the financial markets. New traders favor technical indicators as it eliminates the need to think on their own. They will plot a dozen indicators on their charts waiting for the perfect signal. How many confirmations does one need? By the time all your indicators confirm a buy or sell signal, your entry point is towards the end of the price swing. Afterall, indicators indicate and produce lagging signals.

K.I.S.S. Keep it simple stupid! Simple methodologies have been proven to work in the financial markets. There are numerous traders who use a simple breakout strategy, pivot point strategy, or RSI and price divergence. Is there really a need to make trading so complicated when simple systems are proven to work?

I have noticed that academics, engineers, and programmers turned traders are often the ones involved in designing complicated systems. Perhaps they are underestimating the simplicity of trading? Trying to incorporate vast information and multiple indicator confirmation signals can lead to analysis paralysis. This can cause a trader to freeze in the moment of action and to hesitate in pulling the trigger. What happens if 4 of your indicators signal a buy and 4 other indicators signal a sell? As a discretionary trader, I try to keep things as simple as possible. What a trader really needs is to understand the language of the markets.

The market is like a speechless baby. It is impossible to understand exactly what he is saying but through observation, one can start to get a feel of expression. Apply the concept of auction to the financial markets and learn to read market internals. Look for market imbalance vs balance and price rejection vs price acceptance. Still, trading is a game of probability. But with the proper training, a trader can put those odds in his favor.

The majority of the trading population refuses to think on their own. Being mentally lazy is deadly in the financial markets. Perhaps this is the reason why people continuously seek for the Holy Grail through indicators and systems. They look in places where there are no answers. The only place they should be looking is in the mirror and in themselves. The Holy Grail in trading is to find a trading style that fits you and to understand your pyschological make-up for the game. This can only be done through gaining self knowledge.

Trading should be simple. But the simplicity of it comes through hours of hard work and training. Trying to catch the subway in Tokyo, Japan can be disastrous for the first timer. But after living in the city for some time, one should be able to get across with his eyes closed.

Good luck, best of trading.

Article Source: http://www.bigfreearticles.com

It seems like each day there is another complicated trading system in development. I am quite surprised to see the trading population dig into more complex methods combining various indicators to profit from the financial markets. How many confirmations does one need? By the time all your indicators confirm a buy or sell signal, your entry point is towards the end of the price swing.

About the Author:
James Lee is a full-time day trader specializing in the mini-sized Dow futures. His core trading strategy is based on pivot point clusters and Market Profile. Find out how to identify high probability trading opportunities at http://www.traderslaboratory.com.

Tags: day trading, day trade, daytrade, daytrading, day trading forum, trading forum, day trading chat

Please Rate this Article

Comments

Share This Article - Quick and Easy Using This Button:

Click the XML Icon Above to Receive Uncategorized Articles Via RSS!

Read More Articles From - Home | Uncategorized

Your Options for Getting a Nude Massage at a Spa By: Phoenix Delray - Many people have some issues with getting a nude massage at a spa. Spa etiquette varies by spa, location, and even country, and while a nude massage is a normal, everyday occurrence in some places, it may not be in others. Being naked to get a rubdown is normal, but not required. Although many people dont feel comfortable being naked in front of a stranger, for the most part a massage or body treatment is done in the nude. Modesty should always be respected, however.
Tags: male massage, gay massage, m4m massage, male masseur, gay masseur, nude massage
Video Conferencing - The Pros And Cons Of Video Conferencing By: Cheow Yu Yuan - Many businesses conduct video conferencing during meetings. Video conferencing allows you to call anyone in the world and not only speak to them, but also see them on the projector or computer screen. Video conferencing is meant for larger audience such as a conference or meeting, rather than serving the needs of an individual. As technology becomes more advanced, businesses have made video conferencing an important activity during meetings. However, video conferencing has its pros and cons. Video conferencing advantages: 1. Able to reach anyone in the world and almost immediately. With video conferencing, there is no need for anyone to travel long distance for conferences and meetings. There will be no geographical and time boundary. 2. Works well for a large audience.
Tags: video conferencing, audio visual, lcd projector, audio conference
An Introduction to Handbag Organizers By: Art Gib - If you do not yet have a handbag organizer, as soon as you hear about them you will surely decide that you need one for each and every purse you own. As the name implies, the main purpose of handbag organizers is to keep everything organized in your purse. If you are like most of us, your handbag is probably filled with many items which have simply been dropped in when you acquired them, or quickly tossed back in the purse after they were used. This can making finding items rather difficult, especially if you need small items on the spur of the moment.
Tags: handbag organizers
Video Conferencing - How To Find The Right Video Conferencing Camera For Your Business? By: Cheow Yu Yuan - Video conferencing is fast becoming an essential activity for businesses because it makes communication easy for people in different offices and countries. Before you can start video conferencing in a meeting, you need a good webcam that can deliver a high quality image to satisfy your needs. Nowadays, you can easily find webcams in the market. Webcams can range from very cheap to few hundred dollars or more. I know that sometimes it is very confusing for you to decide the best webcam for your needs. Do not worry. In this article, allow me to share with you some tips to find the best video conferencing camera for your business: 1. Picture quality.
Tags: video conferencing, audio visual, lcd projector, audio conference
Clean Red Widgets Search Engine Optimized By: David Spates - If you found this than you are more than likely trying to make some money online, I will show you how to make money online using the keyword clean red widgets. As here I will simply explain to you how to do this, though there are many ways that you can do this. You can do this through ads like google adsense and ad brite, selling affiliate products, or even just building links for a site that is willing to pay you to do so. But in this case this will be an SEO contest, and the generic keyword that was chosen was clean red widgets.
Tags: clean red widgets, seo, internet marketing, blogging, wordpress, keywords, online traffic
The Internet As A Health Resource By: imteaz ahmed - The internet has quickly become the biggest source of information in human history. With all of the trillions of websites that are available on the internet and all of the massive amounts of information that you can get with a few clicks of the mouse, people have started going to the internet for information about all kinds of things. People are interested in the internet as a resource for news and views in many different instances and they are also interested in it for information regarding things like health. In regards to the internet as a health resource however, there are some cautionary tales that need to be put forward.
Tags: health article
Information On Puerto Rico Data Recovery By: Samson Paulotti - Computers are now one of the most essential parts of our life. And we store all our important documents and files in the hard disk drives of our computers. The computers serve as the modern day office as well as the entertainment zone. But sometimes due to various reasons the hard disk drive may not function properly. And when it happens, the important files and data get lost. Puerto Rico data recovery service providers help the users to recover their lost data from their hard disk drives.
Tags: information, on, puerto, rico, data, recovery
New York Data Recovery Services For All Sorts Of Data Losses By: Samson Paulotti - New York data recovery services deliver their best to salvage your computer data that are lost due to static electricity problems, power surges, lightening, fires and floods. We put our whole world inside our computers. Data loss is just unaffordable, especially to business houses. House computers are also generally found loaded with many important files and data. Any system failure can make us doomed. But data is recoverable up to 80%, provided that you have taken up immediate measures. Also few people know the fact that in certain cases you need not to throw the full hard disk. If the disk is partly affected, it can be used after retrieval.
Tags: new, york, data, recovery, services, for, all
Virgin Islands Data Recovery For Better Service By: Samson Paulotti - Data recovery is required when any storage device fails or gets damaged. The most common data recovery is done when the hard disk drive of the computer crashes or fails. The reason for failure of the hard disk drive may be many. Some of the most common problems encountered while recovering data includes hard drive crash, hard disk failure, surface damage and contamination of the hard disk, water and fire damage, accidental deletion of important files, parts of the hard drive inaccessible, unable to boot or load files, corruption of data, malicious virus attacks, unable to run the system properly and many others. These factors may cause the important data to get damaged.
Tags: virgin, islands, data, recovery, for, better, service
Do You Have A Strategy For Your Online Home Business Opportunity Website By: Juhani Tontti - The main reason, why a website does not bring enough results is the lack of a clear strategy. Your online business opportunities must be wrapped into a pack which has a clear promise to your target group. Because the first impression is so important for busy web surfers, they must understand the promise right away or otherwise they go on their journey. The promise must give a specific benefit to the online home business opportunity website visitor. One good example is: Earn $ 20 per form by filling in simple online forms. There is everything: income potential, what a person has to do, the kind of work he will do and that everything happens online.
Tags: online home business opportunity, online business opportunity, online business opportunities