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Old 05-10-2008, 09:18 AM
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SIMBA SIMBA is offline
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Why prices move

Hi,

QUOTE from Linuxuser "And at some point I've stopped to look for more indicators to help my trading because my trading strategies where fine, it was my mind who needs help. And started to spend lot of time looking charts and trying to discover why the prices moves in the way it does by just using logic." UNQUOTE

You are right on all points,it is your mind that is responsible for most of your trading results,not your indicators...give same system to 10 different people and you will get 20 different results

Not the indicators ,but your beliefs and your emotions... They shape both your view of the market and how you use/misuse your indicators...They act as a filter that allow you to see what is not there and blind you to the obvious...How many times,the day after a particular bad trade,you watch the chart and seeing the obvious ask yourself...How didn`t I see that(trend was down/bought at weekly resistance/sold at daily support/fill w/your favourite)?

Prices move in the way they do pushed and pulled by money flow..to predict potential direction for prices measure actual money flow direction...AND ALWAYS..when in a trade,the moment you see moneyflow changing,exit your trade,because the concept that supported it is no longer valid.

Regards
Simba
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