I am kinda new and want to learn basics for short term trading

But generally people on this topic suggest that its overkill - i.e. too costly and not much in return compared to cost. So is this your opinion as well?

 

You should not care about my opinion. I'm an anonymous poster on an internet forum.

As someone who wants to learn the basics of short term trading your question should be why does it work rather than what works. Nothing works all the time!!!

I don't use indicators to trade.

If you have an indicator that gives precise buy and sell signals and it isn't profitable, I certainly would not incorporate it into my trading system. If it is profitable over the long term, you will be ahead of 90% of the traders out there.

 

Wyckoff and such is all BS 100 year old understanding of markets. Spend your money to learn the drivers of investor behavior so you can make your own predictions.

 

I'm not so sure that the emotions that drive the markets have changed that much in 100 years.

 

This is how I progress.

I started with investing based on tips / hearsay / rumour.

Then I up-ed the trading level and did swing trading using graph paper
(in those days, no computers. So we had to plot the chart on graph paper).

Then I up-ed the level and did swing trading based on hundreds of indicators.

Then I up-ed the level and did swing trading with no indicator.

Then I up-ed the level and do day trading also with no indicator.


Why indicators shouldn't be used?
Many people simply not interested to know why.
Because they are looking for the exotic, obscure, holy grail indicators.

Whatever you do, make sure you make progress.
Make sure you up the trading level.

 

You’re not going to have an edge in gauging investor sentiment using 100 year old indicators.

 

What indicators? Wyckoff used price action.

 

there is only one advice i would like to give.

because every method fails you have to find a way to restrict losses.

you cannot ever have a system that wins 100% of the time because that would mean someone has to lose 100% of the time......and they will either stop taking the other side of your trade or get wiped out so in both cases you lose that 100% win.

remember someone has to take the other side of your transaction and he will not do that UNLESS there is a chance-however small-that he will win.

if someone had told me this 15 years ago, i would not have tried to improve my method......only restrict losses......since i am a perfectionist i probably would not have got into trading at all.

there is no way any one can make or find a perfect method or trade perfectly

so if you cannot keep your losses low you are finished.

concentrate on that .........

not on what method or indicator is "best".....because even if you have a system that gives 30% wins but you are able to cut losses fast then you will be ahead

 

Good grief. Stop with that nonsense! That attitude gets you nowhere, man.

You have a position. Someone else has a position (Or not). You decide to exit your position, where someone else may decide to take a new position opposite yours. And the circle keeps turning. How much stupid music will have to regurgitate on this idea?

 

you are taking a few lines out of context....so yes forget it

bottom line is you will never be a perfect trader.....and no one will.


the thing that differentiates good and bad traders is not methods but ability to cut losses....fast