The NeverLossTrading system surely works with indicators, but on the other hand we consider key trade patterns and price setups that overwrite indicators. When you know how to play chess, there is one thing for certain, you go in the game with a game plan, until the opponent makes a different move and then the real game starts. Quoting Mike Tyson: “You go in the ring with a plan until you get punched in the face.” What does this all mean: “We need to readjust on the go and consider more than just the lineup of indicators. By that, human interaction is needed and not just a computer program that executes on certain combinations of indicators.
Trading and price action is heavily depended on human psychology and action. There is one key underlying human behavior pattern: “We all tend to repeat our past actions over and over again.” When I say this most people disagree, but take a moment yourself and see how happy you feel if you can do what you did in the past and how nicely we label this “experience”. Don’t get me wrong, there is nothing wrong with it, we just acknowledge this behavior pattern and orient our trading towards its outcome: we identify key price patterns that overwrite all linear and statistical actions and when they occur on the price chart, we trade them.
Currently the market acts like a roller coaster. When we are at an amusement park, are the roller coasters not the key attraction where people line up for? Surely their ride combines key elements of fear and excitement which gives us the special kick to ride the roller coaster of the financial market. The key difference when trading the markets is: “we make money on the ride and try to prevent paying admission.”
Good Trading and learn how to trade, do not leave your financial future to a machine.
NeverLossTrading
Monday, May 17, 2010
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