Guest post by Jason Madison, independent trader and founder of BeatWallStreetNow.com
How many times have you been burned because an indicator got you into a trade too late? Well that is a common problem that many traders face because indicators by their very nature are lagging. An indicator will only tell you about a move after it has already happened. There is no way to combat it:
Let me not say that because there are traders that have found some success by using a certain combination of indicators, but who wants to do that? Do you really want to have wait for the 20 SMA to cross the 50 EMA while the RSI is simultaneously giving a reading of 75 and the MACD is at 1 before you take a trade? I hope not because while you are sitting at your computer waiting for the stars to align I guarantee that the real traders will not only be snapping up all the profits your missing out on, but that they will also be waiting for your lagging indicators to get you in the market so they can take your money too.
That may sound harsh but that’s trading. In order for you to make money someone else has too lose. Trading is a gun fight, so are you going to show up with a wiffle ball bat or are you going to come in ready for war?
So, if using indicators is the equivalent of bringing a bicycle to a drag race then how are you supposed to trade? By reading the price action itself that’s how. Once you are able to read the price action yourself instead of waiting for indicators to interpret it for you there will be no stopping you. You will be able to get in on moves as soon as they occur. This eliminates the fatal flaw of indicators and keeps you from opening a trade too late and quickly suffering a loss.
I completely understand the lure of finding the perfect indicator or combination thereof and automatically becoming the world’s greatest trader, but I’m here to tell you that it’s not going to happen. However, if you are willing to set your beliefs aside and learn to read price action I guarantee you will have success trading any market you choose.
Do you want to take your trading to new heights? Do you want to become one of the 5% of traders that actually make it in this business? Do you want to discover the revolutionary price action techniques that will allow you to trade for a living? Well then visit beatwallstreetnow.com
Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.
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