In this video, we are going to do a training
session on trading indicators – where we will discuss general
indicator trading, along with the Tactical Trading indicators,
and how they are used for trading in our method.
You can learn more about the Tactical Trading
Method, along with receiving a number of free training resources
including a trial to The Tactical Trader Day Trading Journal AND a trial to our chat room by
writing in yes where it says
chat room - by
filling in the form below.
Contact Information
If you would like any additional information, or have any
questions - please contact me at:
bal1786@thetacticaltrader.com
Did You Begin Day Trading As An Indicator Only
Trader?
Did you start day
trading after buying a book on technical analysis, and getting a
charting program - probably a free one that you found online - in
order to save money? While reading your book you learned
about trading indicators which could 'predict' price movement, and
what do you know, the 'best' indicators were actually included in
your free charting program - let the games begin.
Now that you have
all the day trading tools that are necessary, the book for
education AND the free charting program with those 'best' day
trading indicators, you now need a day trading plan so you can
decide which ones of those 'magic' day trading indicators you are
supposed to use. This really is a great book, besides telling you
how to day trade using indicators to 'predict' price - it also
said that you need a trading plan to day trade.
So what should this
plan be? The book told you
about trend following using an indicator called macd, and it also
told you how it was possible to pick the top or bottoms using an
indicator called stochastic; my guess is that you picked the
stochastic indicator to start your day trading - this must be the
'best of the best' since this indicator was going to ensure you of
entering your trades with the 'best' price. Amazing, simply
amazing how easy this day trading stuff really is. In fact,
why even bother taking the trades, each time your indicators give
a signal - just call up your broker and tell him to stick $100 in
your account.
My book was
Technical Analysis of the Futures Markets. My charting
program was TradeStation with an esignal fm receiver; that was the
one that if you hung the antennae wires just right, and you put
enough foil on the tips, you might even get quotes. I had
sold a business before I started trading so I did have some
capital - isn't that how everyone gets into trading, you either
sell a business or you lose your job? My indicator was the
macd as I had decided that I was going to be a 'trend follower'
instead of a 'top-bottom picker'. I also decided that I was
going to be 'extra' clever, if one indicator was good than two
indicators must be better, so I added a 20 period moving average.
My first trade was a winner, then after many months of extensive
therapy, I was finally able to forget those days - ahhh the memories
J
Learning To Day Trading - The Learning Progression
Beginning to day trade, or learning to day trade, as an indicator
trader is very typical. This is also logical when you consider - HOW are
you supposed to initially learn how to trade? Trading indicators are
available to anyone who has a charting program, and simply using line crosses,
or histogram color changes, provide 'easy' signals to understand. If you
will also take the time to learn the arithmetic behind your indicators, as well
as learning what each indicator is specifically intended to do, not only is this
a logical way to begin, it is also a good 'step' in your learning progression -
understanding the WHAT you are doing, instead of attempting to create 'canned'
indicator only trading systems, without any regard as to WHY you are trading
this way.
This does become one of the 'sticking' points in your learning
progression, as you come to find out that you are unable to profitably trade
indicators as signals only - now what? Now what - you 'can't' develop your
own indicators, so you start doing google searches for day trading indicators
and start buying your 'collection' - they don't 'work' either. Now what -
you buy a mechanical trading system - what does hypothetical results may not be
indicative of real trading or future results mean? Now what - you start
subscribing to signal services OR you start joining the 'latest and greatest'
chatroom - am I really the only person using the signals who isn't profitable?
Now what - you never learn how to trade.
I began trading as an indicator trader, and I did try to learn
everything that I could about the various indicators, as well as trying to
combine indicators that were consistent with how I wanted to trade - I just
could never develop a mechanical day trading system from what was available to
me. I read a couple more books that didn't really help me, so I then
started looking for someone who could teach me. From what I now know about
gurus -vs- teachers, I am very lucky that I got involved with a money
manager-trader who taught me a tremendous amount, but I still couldn't get
profitable, in part because there was also 'pressure' to learn how to trade
using real money. As well, any discussions or thoughts about trading
psychology and the issues involved, especially to beginning traders, was
non-existent.
Now what - learning but losing - I stopped trading.
Learning to trading using real money, and 'scoffing' at trading
psychology as simply individual weakness, really was something that I now regard
as misinformation. I always mention this as I now feel that this cost me
as much as a year of time, and was very close to costing me my trading future,
as stopped trading was VERY close to quitting trading. How can't trading
psychology be real to a beginner, when you consider that you are risking losing
money at a very fast pace as a day trader, and when you further consider that
you are also doing this when you really don't know what you are doing - this is
NOT by definition being weak. And if trading psychology is real, how are
you going to learn to make 'good' trading habits with real money while you are
fighting the implications?
Now what - not trading and not ready [quite] to quit - still
studying and searching.
Probably the single most important 'thing' that got me to a next
step in learning how to trade, was the concept of a trading setup, and that a
setup and a signal were not the same. This was extremely meaningful to me,
as it also led to an understanding of how to better use trading indicators for
the information that they can provide, but not to use them as trading signals -
in essence I began learning about trading method where discretion could be
consistently applied -vs- trading system that was mechanical and arithmetic
rules.
