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Traders,
I totally agree with Peters' article, price is not distilled from
indicators, but indicators, all of them, are a time lag of price. There is no
way anyone can predict the direction of the markets. They may be able to 50/50
at the very best, just like the flip of a coin. Are indicators useless, no not
at all, I use three types of indicators, all unrelated to each other. I
believe that certain indicators can be used for just entries, I use another
indicator called moving averages or more importantly the slope of the moving
average to describe to me the speed direction of the trend. But as Peter
mentions, using price itself can be the best indicator of all. But some
indicators take years to learn.
I believe the one of the biggest lessons that I have learned is called
the break-even stop. Once I have gone twice the risk in my favor, i.e., risk
$350 and now profitable by $700, I move my protective stop to break-even if we
are early in the trend, if the trend how been existence of several months, I
want to reduce my risk exposure and will go
one to one reward to risk. Once I can get my protective stop to break-even,
unless there is a gap, my risk will be near $0.
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