Just bars and volume. Get a good chart pattern book from library. After a few years being profitable, then you can add indicators, but not before.
Great point, however, there are hardly any quality books or educational material on price action. And it's difficult to trade on price action alone without probably years of continual practice and experience. I try to think of indicators as training wheels in the meanwhile.. good book on price action: www.brookspriceaction.com free online book on trader psychology: http://www.webtrading.com/phantom/preface.htm "rules 1) and 2)."
There are only three books I reread each year Technical Analysis of Stock Trends by Edwards and Magee originally written in 1940's and two books by John Hill written in late 70's, Stock & Commodity Market Trend Trading by Advanced Technical Analysis and Scientific Interpretation of Barcharts. And these are the only three books I ever recommend especially the Hill's books.
Yes, trend following does just that. Rule #1. Trade with the trend. Rule#2, dont get in the biz to tick fuckyourself to death, by trading intraday osscilations that only make your Broker rich. Rule#3. re-read rule #1
You read Edwards and Magee every year? Impressive. That was one of the first trading books I bought, before Bassetti added his name to it, and I wasn't able to finish it once. I ended up giving it away eventually. I know it's considered "the Bible" of technical analysis. To confess, I never went cover to cover with the Bible either, even though I attended church and bible studies regularly until I went off to college. I did like the discussion of Dow Theory. The Gospel of John is good too, although I don't care for organized religion nowadays.
Yes, I read cover to cover, what's funny, each year I understand some areas differently, just like reading the Bible, we grow in age and our thoughts change hopefully in right direction. I read almost nothing new now dealing with trading, you can only rehash the same things so many times, and the really interesting areas in trading, there has been no really good books written on those areas, so I know there are tons of bucks to be had. But when I do read now, it is the Bible to become a better man.
============ Good, helpful points.I am glad i read much of Edwards & McGee, as a library book.Could have gotten lots of wisdom out of Jack Schwager 3 top traders books from the public library. But i got so much out of 3 top ttrading books by Jack Schwager ; glad i bought them. I like Proverbs; all 4 are very practical. Strange to me, but Mark Weinstein's friend wrote he ''digested '' Edwards & Magee;but i got much more ''digesting '' Mark Weinstein' s chapter than Edwards & McGee. Not sure one learns how to be stupid. But 8 years may help one a lot. Perhaps another way of saying that;the smarter you are, the longer it takes.[Chicago trader quote] LOL Citigroup looks like a good persistant down trend; gold, GLD looks like a good persistant up trend.Not a prediction
I catch your drift. In my case, outside of a couple message boards, I no longer read about trading. This wasn't a conscious decision, it just has happened that way. I also no longer write in a journal. I record my trading sessions and speak my comments into a microphone. From time to time I replay a part of a day but usually the videos just accumulate in my harddrive. I haven't lost any enjoyment working with fresh data, however. Especially when "complex" formations are unfolding, like what developed from Sunday's open to early this morning's breakout which I monitored on the 90AS. There really isn't much to impulse moves; everyone knows there will be a retrace and an attempt at a resumption at a minimum. Whether I'm getting any better as a man is debatable. I don't read the Bible. It might have something to do with the fact that, having stared at charts for so long, I've become more visual and written words have less relevance to me. The articles in Playboy are no longer interesting. The pictures I still like.
If,according to the research more then 70% traders make money with demo accounts,then it`s not about reading books and articles.