Please help newbies- How to trade w. indicastors

N

neo_hr

Helo everyone!

Firstly Id like to thank all the members that have answered my posts in the past, Babak, Praetorian, j_medved, dkamp, rtharp ...sorry if I forgot someone. It is really to have you guys!!!

I have been learning to daytrade for three years now, mostly internet articles. Been to tradingmarkets.com, stockcharts.com and daytradingsticks.com. Read it all, printed it all. However, after all this time and numerous charts and indicators, it still looks to me like this :

-you pull up the chart
-look for S/R, patterns, trendlines
-you put some studies on it but they only confirm what you see on the chart (why use them:confused: )


For ex, a stock is in a downtrend for two weeks, starts to pull back for two three bars... is it a pullbackk or a reversal?? No indicator's gonna tell you that.

My style is to look at dailys of my basket of stocks at night, find potential play for tomorrow and then watch it the next day from 3 PM to enter.

My question is this : How to REALLY start to understand relationships between stoch, rsi and say...obv and the stock movement?

I am asking this because I am sure there are a lot of traders arround the globe that are like me, knowing al the definitions, calculations, formulas but don't have the experience in grasping it all. Or am I only dumm one here :confused: ?

Thank you all for your help and keep those trades green!!!

Alex_from_Croatia:p :cool: :)
 
P.S. If anyones interested in "working on it" with me, I ude stockcharts.com for EOD charting.

-go to www.stockcharts.com
-pull up a chart of any stock
-underneath are a couple of underlined links; click Restore your ChartCode
-left upper corner put in 9757779
thats it! just choose your favourite charts on the left grey nav.

Cheers!

ALex
 
Indicators all suck..... They all lag.... As my trading has progressed, I think I'm like 90% gut feel now, maybe 10% indicator...... By indicator, I mainly use short term moving averages (gut can tell you if it will bounce though) and I use the bol bands occasionally and the sp futs. Just get a good gut feel and run with it though.... The less math you use, the better you are honestly, cause it's just a crutch that you don't need.
 
Agree totally P2. I never trade off charts or look at indicators of any kind.

My theory: indicators follow price, price follows news and sentiment... so I watch how the market reacts to news and position myself with the sentiment. This is a highly discretionary/intuitive approach, but it works well for me. It is important to use a methodology that you believe in and are comfortable with.
 
Don't trade off your "gut". That's nonsense. Unless you're a woman....(women's intuition ;-)

Indicators are real time info about the market. To disregard this in lieu of "gut" is ridiculous and irrational. What is their "gut"? Would you place faith in something as ambiguous as this? Even further, would you risk your hard earned money? "Gut feel" has sunk many a gambler/speculator.

These guys who claim a prophetic guts are flattering themselves. They think they have the "instinct" of a predator/trader. Let the FORCE be with you OB1 Kinobee. LOL.

Trade off real info. Not some vague 'feeling".

Bucky Lee

Hey prae, what happened to your gut yesterday when you claimed the DOW would end green? :D
 
Yeeehawww!

As my friend Tack would say...:p

Guys, we're all traders, professionals (I hope!) ; i started this thread as a help from more experienced guys to us newcomers. I mean, if they trade off of indicators -fine, if its gut feeling-fine too, if its the moon phases... well...:(

I respect everyones oppinion, and if someone disagrees with anybody, please argument your reply so we can all benefit from it. I have read some marvellous posts by praetorian so I tend to belive what he says, but if you others trade w. indicators, please explain it, it's the main reason for starting this thread, I would like to be able to do it just like you Bucky Lee

"Human stupidity has no limits" - let us EliteTrader members NOT confirm it by confronting without arguments!:cool:

Many greetings from sunny Croatia!

Alex_the_peacemaker
 
I think what P2 means by "gut" is being able to look at a situation (chart, L2, T&S) and be able to get a "gut" feel for what is really happening. It's not just a blind feeling (or moon phases). All experienced traders will get this feel for stocks/markets they know well.
 
praetorian2: “Indicators all suck..... They all lag....”

I disagree. More concretely, my results disagree. I use and have used “math”, as you put it, quite successfully for many years.

Unless you’re privy to the aggregate thoughts of the market participants than every bit of info we rely upon can be said to be lagging or coincident. I have no problem organizing past data to determine the probable outcome of a current situation. I just go about it differently than you do.

zentrader: “It is important to use a methodology that you believe in and are comfortable with.”

I’d line up with that.

I will agree that most of the currently popular indicators offer little insight into the processes that determine market direction or fail at recording useful relationships. I rarely look at “canned” or “popular” indicators and if so, not in a conventional fashion. I’ve designed indicators based on the answers to the questions I continually ask myself about what drives the market and to what extent.

I submit, though, that I have known successful traders that have used indicators whose underlying conceptual framework was, IMHO, flawed and therefore offered nothing more than random data regarding probable direction.
 
My trading was mediocre until I got rid of indicators. Price and volume feed the indicators, so I figured why should I want to use an interpretation rather than the source? Play probabilities off price--if it's oversold, watch for a rebound then take a fixed risk for a greater reward. If a stock is breaking a previous day high or low, limit your risk and play the probability that the stock will continue to move beyond the high or low. If it doesn't, go to the next probability play. Shoot 50% with good risk/reward and you make money. So I say figure out how to do without the indicators, and add them later if they help your trading.:)
 
I spent quite awhile studying indicators but have come to the conclusion that they can only confirm your "gut" feeling. If anyone can show me a profitable system that works off indicators alone I will humbly bend over and kiss your assets. I do watch RSI and volume which do, on occasion, lead price but it always comes down to how I "feel" about the trade and that feeling only comes from experience. There are so many veriables that they can only be computed at the moment of the trade and only the human brain can do that.
 
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