Hello everyone, I am new to trading and am reading Dr Elder's books, Trading for a Living and Come into my Trading room. I gather they are good places to start. The advice seems to be to get to know a handful (5) of indicators (trends-following and oscillators), and to use them well. 1. Would there be any advice on which indicators to start with? 2. Elder talks about how pros play the system by estimating where amateurs place their stop losses, and deliberately pushing prices below those limits. Is this more likely at all when you make decisions to enter or exit a trade using the more common indicators, such as moving averages or MACD Histogram? Thanks!
Don't necessarily believe everything you read Oh there is plenty of advice, see my first reply above. Wouldn't say it's more likely, but those types of indicators certainly won't make it any less likely either. There is nothing wrong with doing some reading. While you're doing it though spend some time watching real time price charts, sans the indicators. You might be surprised how much you can learn on your own. Provided you don't rush into trading real money. Then over time you can make an informed decision on which IF any indicators suit your style/method.
========== Yes , Mr E- 88-50, thats a helpful book; For educational purposes only,50 dma, 200 day moving average[ dma], are some fine places to start study. Frankly , the reason why its so easy to lose money trading or investing ; has not much to do with people/Pros running new traders stops. Also you may find the wisdom in Proverbs & Jack Schwager's 3 top traders books more useful ............ I did & I do. Remember the rule of 72.Work 6 days a week for 12 hours a a day=72/+ hours a week . DO that for 7.2 years.......................
Trade a sim account and try out the various indicators. It will enrich your experience and you will discover what you like and don't like about the various indicators. At the end of the day, the best indicator or method is the one you are comfortable with AND which makes you money.