Indicators, Schmindicators! What do all these indicators mean to your trading success?
Absolutely nothing!…if you don't have the right system to interpret them, apply them and put (pun intended) or call you "IN THE MONEY" (ITM) on a consistent basis. Profit is the name of the game! Whether it be moving averages (MA's), exponential moving averages (EMA's), relative strength indexes (RSI's), Bollinger Bands and everything in between, they won't help you in making profitable trades if you don't have the right trading system that deciphers these indicators into the right entry point for your trade. Many of these indicators are lagging indicators that will show what has happened in the market after the fact. Too late for you to get in and too late for you to earn a profit.
As a trader this is not where you want to be. I think that we all have experienced a "V8 slap on the head moment" when we should have entered a trade, only to be viewing the continually moving market and seeing that we just missed what could have been a champion-producing trade. How do you avoid this happening to you? As you know, it can be very difficult and complicated to decipher which indicators to utilize for your profit making trade. This is where having a consistent profit making system provides you invaluable indicators for your trading success.
Let's take a closer look and dispel some "myth's" about indicators. For most charted indicators, the problem is, they reveal lagging characteristic's of what has taken place in the market. Key word is "taken" – meaning past tense. That's all fine and dandy for back-testing the patterns in the market, but does little to embolden you in entering a trade at the right entry point. The indicators that are going to put, or call, you "in the money" are price action indicators. These price action indicator's are what's going to lead you to the promise land of profit! This is where it becomes imperative to have a proven system that not only provides you with leading indicator's based on an ongoing analysis of market conditions on your trading platform, but provides you the necessary confirmation to enter into a winning trade. Now does this mean you're going to win every trade you enter? Of course, the answer is no. If you won every trade you entered, then you would not only have the "magical touch" you would also be a multi-millionaire quicker than I could filet a fish. It simply doesn't work that way. With proper awareness and discipline it is possible to enhance your winning percentage up to 80% and beyond just by sticking to trading a winning system. The key word here is "system". You must have a system that implements the best strategy for success with leading indicators that also provide you with confirmation to know when to enter a trade for your best opportunity for profit and success.
At smallmoneymadebig.com we are here to educate and provide you with system's that are going to optimize your trading success and your profits. So, back to the big question… do indicators matter? Absolutely! The right system that implements a strategy of reading and analyzing these indicators and signaling your best opportunity for executing a profitable trade is an absolute must for any binary option and forex trader looking to achieve new heights of success and profit. The whole idea is to make your small money into big money. Having a simple and proven trading system, that will have you executing winning trades over and over again, will always be your best indicator of success.