Decoding Markets and Marwood Research
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101 Lessons For Aspiring Traders PDF
...on technical analysis
101 LESSONS FOR ASPIRING TRADERS 11 12 13 I have seen moving average plugins advertised as being zero-lag using mathematics taken from military aircraft. The reality is searching for the holy grail technical indicator is a fool’s errand. Stock markets ultimately move on fundamentals and liquidity. Indicators are just tools and numbers are not everything. Try using technical indicators in creative or unusual ways. For example, using RSI on economic data or dynamically optimizing indicators using a walk-forward or machine learning method. Learn to plan and structure every trade so that you know what to do in any eventuality. Modelling different scenarios before hand can be tedious but can be one of the best ways to get an upper hand over under prepared traders. As humans, we have many mental biases that can hurt our trading. For example, the availability bias is the tendency to overweight more recent or more memorable information. But if you only remember recent events you’ll have difficulty estimating true probabilities. Also, the availability bias leads to overly emotional trading. For example, after a winning run you can become overly confident and after a losing run you can feel depressed. The solution is to look at all of the data objectively. 01 02 Never underestimate the importance of confidence in trading. One way to boost confidence is to book a quick win. If you’ve had a few losing trades, taking a profit is the best way to restore some confidence. 03 04 One of the first things you can do is remove the colours and flashing animations on your trading screen. These colours come from casino games and are designed to increase your heart rate and get you to act. They are not necessary for professional trading. There are thousands of different markets, and opportunities to trade every day, it’s easy to become distracted. But don’t worry about what anyone else is doing. Who cares if you’re trading hype stocks, pork belly futures or regional banks? Forge your own path and find something that makes you money. Download 1.87 Mb. Do'stlaringiz bilan baham: |
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