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Trading is not Science

Discussion in 'Beginners Bootcamp' started by Rambo35, Dec 11, 2013.

  1. Rambo35

    Rambo35 Corporal

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    I know most are aware that trading is not en exact science, but rather and art form. I decided to point that out as I read countless threads and posts where new trader are confused about why something did not happen despite an indicator suggesting otherwise.

    Let's take the RSI for example, just because it trades above 70 or below 30 does not mean the price will reverse. Same holds true for any support/resistance levels and even down to pure price action where a price does not automatically reverse direction because of a candlestick formation.

    Sometimes that happens, but other times it does not and to blindly enter trades because of any single signal makes no sense. You should take those events as a sign to further analyze the charts and yes that means you need to work and can't be lazy about it.

    Trading is an art form which you may or may not be able to learn after years (that is with an 's' at the end).
     
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  2. RahmanSL

    RahmanSL Major

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    If indicators are 100% accurate, brokers would become traders themselves:p

    When trading with indicators, traders should also pay attention to the fundamentals since it would be foolish to make a sell trade just because indicators suggest so while fundamentals say otherwise.
    For example, indicator suggest a certain pattern to indicate that the Aussie is in a bearish mood, but strong positive data are coming out of China. It would then be better to ignore the indicator and go with the fundamentals because the Aussie dollar is strongly correlated with China economy.
     
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  3. willforex

    willforex Corporal

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    Good One Rahman. Agree with you
     
  4. dkami

    dkami Sergeant

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    Thank god for that because my bunsen burner run out of gas, beaker was turned into a bong and me lab burnt down:rolleyes:
     
  5. LoRio

    LoRio Sergeant

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    If your perspective is "Dont enter cause it may or may not happen,and if it doesnt happen you may lose the 100% streak" then i disagree.
    Sit down with your strategy , and the fundamentals , know its win ratio and if its fit , enter every time your strategy says so , and dont further analyse.The strategy is green light one , and no fundamental resistance is green light two"
     
  6. Pharaoh

    Pharaoh Colonel

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    On tonight's episode of Breaking Bad, Walt and Jesse steal all the gas from a rival's bunsen burner.
     
  7. UncleSteve

    UncleSteve Corporal

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    it's an art not a science, but it's an art you can improve through application of the scientific method.

    (this refers to the OP's topic, not the entertaining but otherwise irrelevant suggested alternate uses for scientific equipment)

    (besides, home distilling is funner)

    alembic2.
     
  8. Pharaoh

    Pharaoh Colonel

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    And generally less likely to get you arrested.
     
  9. UncleSteve

    UncleSteve Corporal

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    yeah... I did almost blow up my house once because of a primary still with a leak, which would have sucked...
     
  10. Pharaoh

    Pharaoh Colonel

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    Maybe try making beer or wine - those are less likely to burn down your house.
     

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