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Support / Knowledge Emporium / Thinking Traders' Way to Regular Profit

Thinking Traders' Way to Regular Profit

A thinking trader does not spend his or her time looking for an answer to questions that simply don't have one, such as: "Where can I get a profitable (tremendously profitable, of course) trading system, method or buy/sell signals?"

The majority of traders look for that one "silver bullet"
that will solve all their problems year in year out; never really seeing the market the way it is. You can never hope to make a profit on a regular basis if you don't stop asking yourself questions like this one.

The fact that this question is asked by so many, only illustrates their ludicrously simplistic understanding of the market's nature. They see it as a relatively simple problem to be solved. Correspondingly, this view indicates their slim chances to turn a real profit, because on the very day that any single person of this millions- strong army did the impossible and found a "technical" key to the market, the market would cease to exist.

The market is highly volatile and one day, when you think you now know exactly how the market works, the market may prove the opposite in the most unexpected way. One cannot possibly know "for sure", one can only understand the underlying principles, be prepared for the unexpected, and know when he should try to profit from these developments and when they should be avoided.

No one can give you a dogma to profit by.
If you analyze the market consciously, you will gradually stop asking yourself where you can find that magic solution or the combination of sure technical analysis methods that everyone dreams about. The day you stop asking that question will be the day you will engage in real market analysis, the day you will lay a foundation for your trading, and the first day of your journey to developing a profitable trading approach of your own.

Technical analysis is an attempt to formalize what cannot actually be formalized. This attempt is made to give the trader a foot to stand on. The technical analysis methods are just pointers, leads to follow, avenues through which the market information can be interpreted by the human brain and then analyzed. Anyone regarding technical analysis results as instructions to be followed is bound to fail.

Trading software programs are simply tools for visualizing the market
, facilitating the trader's work and testing ideas on past data. It is the trader who does the most important part: understanding the market and consequently, deciding when and which of the techniques should be used and how much trust one should have in the techniques in each particular case.

You can use the #1 software in something-based trading or a trading method wisely concocted by some market guru, but both things will be what many other traders use and heavily biased in favor of some single trading method. Software vendors speak about this very seldom, but the truth is any software should be accompanied by solid trading skills based on an unbiased understanding of the market. And the truth is, to gain an edge, You should continuously tailor the different methods to your style and risk preferences, as well as to the evolving market.

Since the market is constantly changing, it is important that you have multiple techniques in your toolbox. To combine or select them effectively, you need to have them incorporated in a single software product. This is the reason why Tradecision is so feature-packed; the software is designed to allow you to easily combine different techniques for different market environments. However, as with any other software, the great Tradecision functionality should be coupled with your skills, and in this case, with the ability to vary your trading style to match the current market conditions. And Tradecision is designed to help you in this endeavor.

A thinking trader understands that his or her personality hugely affects his or her trading.
Are you too impulsive or too cautious? Does your desire to avoid losses far outstrip your desire to make a profit? (Will your ego be piqued?) Do you hate discipline in any form or have a residual desire to please your parents (boss, some market guru, your colleagues)?

There are many more factors like these ones affecting your trading results often even more than the trading system you use. That is why you should invent your own trading approach or tune a well-known one to yourself. With Tradecision, you can try and tailor more approaches than with any other system on the market.

More Articles:
Gaining the Elusive Edge
Thinking Traders' Way to Regular Profit
Neural Networks: Understand to Win
Candlesticks Technique
Counting on the Waves
Fibonacci: the Wandererís Conundrum
Gann Studies: Reality Behind Legend
Andrewsís Pitchfork: Thinking Approach
Head & Shoulders: a Close-up
Trading Systems Coding
Trading Without Noise
Backtesting: Interpreting the Past
Profiting From Panic Selling
Advanced Fibonacci Applications
Retracement Or Reversal: Know The Difference
Advanced Candlestick Patterns
Day Trading Strategies For Beginners
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