Incorrect. Any car can be repaired given adequate skilled mechanics and facilities. Old rustbuckets are restored and resold all the time. But prices still either go up or go down for all traders. For most it comes down to laziness and/or lack of imagination. People expect some guru(s) to just hand them the keys to wealth for little or no money and effort on their part, as if the world owes them. And even for those who don't fall into that ridiculous category, why would access to a highly profitable trading strategy be readily available at any price? People have become multi-billionaires from knowing how to trade and then doing it ... that's why so many others want in on the action. If you bought and read a book on treasure hunting, would you expect to find maps to buried treasure inside? Would a book on gold mining reveal untapped hot spots just waiting for you to come and dig them up? Real knowledge on how to gain wealth is hard won and not readily shared. And public methods of trading that do pay off (like the SLA) are just too much like w-o-r-k for most. They want the magic formula, the magic algorithm ... for next to nothing of course. LOL Price can only go up or go down. Think about it ... or don't.
This post is interesting. Yeah right kut2k2, I agree, there is not an optimal number of indicators. But one for trading ? definitly STOCHASTICS ! Stochastics are difficult to practice compared to others indicators, they give false signals, they need patience and work, I think this is why few people use them. But when you masterize Stochastics, you reach a "new level" . If someone uses a more reactive indicator, sure i am interested ! Chris Mac
I think that as a minimum you need two. One to alert you and another to confirm or caution you about the trade considered. Plus lotsa practice.
My trading philosophy: If your technical indicator needs confirmation, then you need a better technical indicator. As always, YMMV.
Is that an endorsement? Minor quibble: price can also go sideways (which is why, if one is going to use indicators, he needs at least two).
Yes, actually. It's a lot easier to draw straight lines than to figure out a magic algorithm for determining all possible significant price movements.
Havnt used an indicator for years unless you counts fibs. As a failed scientist the 'why' (price moves) bothers me and no indicator helped me with that. I dont believe it is absolutely necessary to know why but for me it was.
As a scientist, you can appreciate the fact that Newton's law of universal gravitation explains how gravity works but not why. And Newtonian physics got us to the moon. Figuring out the how is difficult enough, I leave the why to philosophers (or in the case of price, economists).
The "why" isn't all that difficult. Price rises as long as buyers are willing to pay the ask. It falls when sellers have to lower the ask in order to complete trades. That's it.