There is nothing sexier in trading than the stock market indicators. Think of indicators like smoking hot accessories to accentuate your finest features. The right earrings, necklace, and bracelet can really make you a total knockout standing out from the crowd!
Indicators work the same way for trading. I know it sounds ridiculous, but it’s true! But the right indicators can help you find the sexy entry points and exits for your long/short positions that will bring you the buckaroos.
Let’s say you’re shopping for a new dress to go a Gala with your honey.
After trying out a ton of dresses you find just the one.
But to make it sizzling hot to get the effect you dream of, you need to think about the type of accessories to add to it.
Will the chandelier earrings bring out the shine of the dress?
How about the size and color of your prized handbag that you want to add to it? Will it accentuate your curves when you hold it close to your waistline? Will it be a perfect match to your open toed high heeled shoes?
As you can see, you don’t just buy a dress, you first think of the accessories that will make it the dress that it is meant to be.
Same for Stocks market indicators
First you shop around for the right stock you want to buy. You fall in love with the company. You feel you understand what it’s all about and how they will either succeed (long positions) or you feel the company is going down the tubes, perfect for a short position.
Next you apply your beloved indicators. Or the general term – technical analysis, which means viewing the positions with the indicators giving off green lights to either enter the trade, hold, get out with a profit, or get out with a small loss.
Just like accessories there are literally hundreds of different indicators to try on and see if they fit. While you’re sim trading in paper money you will play around with the ones that work best for you. The ones that you fully grasp, and feel most comfortable will be placed on your charts. Which no trader can EVER live without. Depending on what you trade will depend on the amount of charts you will use.
There are thousands of traders using all different configurations for their indicators. With time you will perfect favorites. And in the end, simplicity will win out. I don’t recommend going with more than five indicators. But this will be part of your trading discovery and journey.
One important thing to note, when you start using charts and practicing with different indicators, you will be overwhelmed not knowing where to look. Think of it this way:
When you learn to drive a car,
Now, it’s time to play dress up.
These are probably the most common and most used. I recommend working with one at a time to understand what they are all about. Study them, try them out with your stocks, and then slowly put them all together.