First of all thanks for the response and answers guys I should probably precise my goals with trading. My goal is not to daytrade the market in my oppinion the margins for profit makes the odds really bad to succeed. Im more interested in trading stocks on a longer term( weeks, months) so im wondering if this type of trading as an addional income is worth it. Im also wondering what part of technical analysis according to you works for example: divergence of price, macd, stochastics and so on. So trendfollowing indicators and reversal indicators. Has anyone had success implementing them in a tradingsystem? Or is it just crap like many here believes/says Im currently studying medicine so i dont have time to trade everyday but im very fascinated by the market and my goal of it is to have a nice return anually, beating the market. I am willing to devote years of my freetime for this provided it can be done.
Tread carefully if you take the indicator route. Keep in mind that if indicators were the answer, everyone who used them would be successful.
Yes I know what you mean. But put it this way. If the indicator route never worked then why does it exist in the first place? Maybe there are some aspects of technical analysis that can improve your odds and if that is the case what works? So a question towards you traders what has worked for you guys? Speaking of "routes" what alternatives are there? What kind of routes can a trader choose from?
Indicators are popular because they appear to be easy. How did they come about? Perhaps because they seemed less time-consuming than trading price. What "works" is a thoroughly-tested and consistently-profitable trading plan. It will be next to impossible to find a losing trader who has one, at least a losing trader who isn't psychologically crippled in some way, e.g., a gambling addiction. As for other routes, some people love patterns. Others trade price, also called "trading naked". If one trades price, he can plan his trades in advance. In the 20+ years I've been actively trading, I have yet to see anyone plot trades in advance using indicators. Rather it's "here's a trade I took". This isn't to say it's impossible. If you're unclear as to what I mean by trading in advance, you may want to review the posts I've made to my journal this week. Granted this is futures, but the principles are the same. AAPL, for example. You might also be interested in this: http://www.businessinsider.com/the-richard-wyckoff-stock-trading-method-2013-2?op=1. You'll note that there's not an indicator in sight.
Not that I disagree (except the everyone part) but your statement could easily be flipped: Keep in mind that if Price Action were the answer, everyone who used it would be successful.
Pretty much. But so few people do. At least nowadays. But traders focused on price action for thousands of years until the beginning of the 20th century.
Well, if I'm understanding your statement properly, the 'Grinding it out day after day' thread is the obvious one.