I am starting this thread because i need to share something to the people who are struggling. The most important thing in Technical Analysis is understanding what style of trading you are adopting. Many people losing money have no idea what they are doing because they are self taught and the books that are out there have no clue either. At least 90% of them. Here is the vital information about TA many of you starting out need to have: BE AWARE OF THE DIFFERENCE BETWEEN A DISCRETIONARY AND A MECHANICAL APPROACH! I have seen people trading like discretionary traders but using indicator based setups and I have also seen people trading chart patterns in a totally mechanical and rigid way. What you need to know about DISCRETIONARY TRADING is that it is mostly based on recognizing chart patterns, support and resistance to evaluate trend continuation or reversal. This style of trading has the advantage that it can be applied on ANY market, ANY timeframe at ANY POINT IN TIME. What you need to know about SYSTEM TRADING is that it is based on a set of rules given by technical indicators, much more objective than discretionary systems, identifying almost identical market conditions (the setup). The main advantage is it's OBJECTIVITY. Now, the disadvantage of a discretionary system is the trader itself. If the eye isn't trained, the system is worthless. The disadvantage of the mechanical rule based system is that when the market doesn't fit the system's profile, the results aren't positive anymore. The parameters don't work anymore and tweaking them won't do you any good. YOU NEED TO KNOW WHO YOU ARE AND WHAT YOU WANT TO BE. You want to be the guy that wakes up in the morning, goes to work, study the market before the open, trade the living hell out of it, and then go home to relax and have a good time with the family, you probably would need to look for a DISCRETIONARY APPROACH. You want to be a "creator", a "designer"? Then you need to be a programmer, a supervisor and a researcher. You need to constantly look for systems and markets that fit those systems' profiles or parameters, monitor the markets and activate the systems that go above a certain threshold and deactivate those which go below the profitability mark and so on. This is the core of the MECHANICAL TRADER. I hope this thread will cause some soul searching. At least those of you who really had it with losing and getting totally misleading education from books and stuff you pay your hard earned money for.