The BEST Trading IndicatorWith the ever increasing number of indicators, it makes sense that beginner traders’ wish to cut the steep learning curve by trying to find which indicator is the best and the most profitable to choose from.
It’s overwhelming to start trading with so many jargon terms like, the MACD, RSI, Stochastics, ADX, Bollinger Bands and so on…
Luckily, you won’t ever have to worry about any of these indicators.
Here’s why…
The quest to find the perfect trading indicator
There is a big misconception when it comes to learning how to trade.
Most new people start by going onto Google to search for the ‘best trading strategy’ or the ‘best trading indicator’ to speed up their success.
Everybody wants to find that perfect trading indicator that will help them profit 80% to 100% of the time.
Yet, at most, there are only 5% of traders’ out there who are able to make a consistent income with trading.
I have two main reasons on this matter, which I’ve gathered since 2003.
Reason 1:
All indicators are history
With local and international markets such as the stock market, Forex and even with crypto-currencies, there are billions of rands traded every day.
With the ongoing economic, socio and political events taking place, every transaction from either a company, private individual or even a bot is entirely unique and UNEXPECTED.
So which indicator is the best to choose from?
Well before you go and do research on each indicator there is to trade with, let me spare you the time and tell you this…
Every technical indicator and oscillator out there, is based on one thing.
HISTORICAL DATA.
When you add an indicator onto a chart, it can only show one of three things which are either the:
Current momentum.
Current trend direction or the.
Demand and supply based on buying and selling volume.
Not one indicator has any form of predictive qualities. Even with the dawn of Artificial Intelligence and Quantum Computing, there will most likely never be that one indicator that will be able to predict the future with accuracy and certainty every time.
However, let’s say there is that one Quantum Computer that is able to take every news event, internal and external factor into account. The information assembled and collected, will still be based on past data.
By now you may be feeling like your life has been a lie with all the marketing fluff out there with the 100% win-rate and get rich quick scams, but I assure you there is one legit way to succeed from trading.
Reason 2:
Each element is essential
It doesn’t take just one trading strategy to bank a consistent income.
It doesn’t take just a few rules to follow and,
It doesn’t take a whole lot of money to fund your account to make it as a trader.
No, in actual fact it takes four equally important elements namely:
MARKETS:
You need to find the best markets that are out there to trade and when to trade them.
METHOD:
You need to create or adopt a proven trading strategy that will fit your personality. (Price action with a few patterns is all that's needed to spot probability trades).
MONEY:
You need to have just a couple of money management rules, to follow every time you take a trade.
MIND:
You need to find a way to develop trading self-confidence as well as a strong mindset throughout your career.
This is where so many different trading companies, publications and even education institutions seem to miss the mark.
They either specialise ONLY in psychology, trading analysis or just on money management. Unfortunately, this is one hobby or lifestyle where being an expert in ONE field will not guarantee your success.
