KISS technique ...
Keep it simple; all indicators and oscillators are derivatives of price action, plain and simple. Sure, there are some great Fibonacci, Gann, Elliot Wave, Turtle Trading, and even neural network, chaotic, or fractal systems traders and so on, but he vast majority of solid and successful traders realize the basic functions of price movement tells the story, and builds structure from which to trade... and a couple simple and centaries old (read: proven) tools is all they need to make market decisions.
Jay is a perfect example ... I know zero about his trade history or results, but I can tell by his posts. He has mastered the proper use and reading of moving averages, knows support and resistance levels from market behavior, and reads the market clearly without any lipstick or blue suide shoes. I would suggest a similar mastery as your educational first goal, and work your personality from there if necessary.
Later, we'll look at the mother lode of all trading... trade and money management. A very skilled manager can take a losing theme and scratch it if not actually profit by how he handles building and selling off his position. The best I've seen graced these pages ... Gold Coast Martin ... until the uninformed and critical couldn't see beyond a few pips to what he really brought to the table. But, bottom line, NOTHING is more important in trading, not entries, not exits, not being "right or wrong" than trade/money management. That includes the previous... don't take a big hit. Unfortunately, like many others, I could write a book on this, but suffice it to say, if you are serious about this business, you'll study ad nauseum trade and money management.
More From the Global-View forums:
san diego bobl 13:14 GMT April 17, 2008
...I love this business and if it's possible to positively enfluence some traders I'll attempt to do so with some longtime lessons. One such lesson is that this is a particularly hard business to win day in and day out with a short term approach. Most traders would benefit from looking first at the long term picture, i.e. the monthly/weekly charts to first get a sense of direction, and then use their techniques or methods to enter trades only on that side of the trade. That way you are either bullish or bearish a particular cross, and not subjected to conflicting views of the market at the moment. For instance, I am bullish the EURO and therefore have no interest in shorting it, even if that appears to be a strong move on any particular day. Like Jay pointed out today, there was a "pullback" area that held several reasons for entry there...not the least of which is risk. When you await your number, then once achieved you go into automatic mode with a plan versus watching it tic this way and that and fumbling for a reason to jump on board. Keep it Simple (KISS approach) usually plays out better in the long haul.