My Thoughts On Using Indicators
Yesterday, I mentioned that I would begin focusing more on trading strategy and education while still maintaining the same level of trading ideas, stocks screens, trading plans, etc. Today, I want to talk about indicators and their use towards being a successful trader.
The fact is, that indicators do serve a good purpose, but they cannot be used as the main reason to buy or sell a stock. Instead, you should use them secondarily to price and volume. Over the course of the next five or so trading days, I will discuss in more detail, they ways in which indicators are misused, and how you should be careful not to make the same types of mistakes as well.
Indicators, if abused, can ruin a trader's portfolio, and there is common thread among traders who do this, and they can be summarized below in five concise points, of which I will be expanding on each of them in separate posts this week and next.
5 Ways To Abuse An Indicator.