Indicators are overhyped... The truth about them...

[JR97]

Originally Posted by bobnat

I believe the most important step in a trader's journey is when he finally (if ever) assimilates the idea that trading is not about predicting the future. It is simply about taking calculated risks utilizing proper risk control and money management so that, in the long run, the probabilities pay off in his favor. It's hard letting go of the belief that the markets can be "figured out" or "predicted", but until it happens, one is going to get their ass handed to them eventually.

Nat

That is about the only thing that makes sense in this thread. Beautiful. Can I quote that?

It's amazing. I know more people that make money playing poker than I do in trading. And people consider poker gambling? Play the odds. And only play the odds and you'll do well in poker. So why don't people do the same in trading?

[ash71]

How would one equate support and resistance in Poker? The best indicator for me is real time price action around support/resistance, areas of convergence, etc...You cannot predict the market, Bobnat said that very well. But if you have been at it for a while you get the know the pulse of a currency pair or two and how they behave under marketconditions you can sometimes be prepared for IMHO. I think it's more simple that most, and managing your trades is the only real key. However, Bollinger Bands can sometimes help define a solid zone of S/R, and Fibs can help with an additional bias too.

[el cid]

Originally Posted by bobnat

I believe the most important step in a trader's journey is when he finally (if ever) assimilates the idea that trading is not about predicting the future. It is simply about taking calculated risks utilizing proper risk control and money management so that, in the long run, the probabilities pay off in his favor. It's hard letting go of the belief that the markets can be "figured out" or "predicted", but until it happens, one is going to get their ass handed to them eventually.

Nat

well put , I'll save it for the trading bible

El

[JR97]

Originally Posted by ash71

How would one equate support and resistance in Poker? The best indicator for me is real time price action around support/resistance, areas of convergence, etc...You cannot predict the market, Bobnat said that very well. But if you have been at it for a while you get the know the pulse of a currency pair or two and how they behave under marketconditions you can sometimes be prepared for IMHO. I think it's more simple that most, and managing your trades is the only real key. However, Bollinger Bands can sometimes help define a solid zone of S/R, and Fibs can help with an additional bias too.

That's exactly what I do. 2 sets of BB Bands to give the trading range multiple time frames. When confluence occurs, I wait for the trigger and I'm off. In poker it's the same thing. Wait for good cards and lay down everything else. Know the odds of yours and your opponent's hands improving on the draw etc. Know where the s/r is to compute risk/reward. That is how you use "support and resistence" in poker. But the main thing in poker, as is in trading, is managing risk. Low probabilities mean higher risk meaning don't bet the farm or don't play/trade.

My trading improved 100% when I learned proper money management by getting good at poker. I also learned discipline and emotional control. You think staring at charts requires emotional control? Trying staring someone down you think has Kings and you only have Jacks. Do you fold and give up the pot? Do you bluff and represent Aces and throw more money in the pot? Slow play? fast play? Many lessons to learn in poker that can be applied to trading.

[zen_tigerz]

Indicators are nothing more then a reflection of price in the end all you have is price. Poker is the only game I think I could make a living at besides trading. The understanding of probabilities is so very key. I keep winning at poker not because I am a good poker player but because I am a good probabilities player

[Dunzy]

Hello,

I'm not an expert at any of this but heres is my 2 cents about Indicators.
Indicators are not bout predicting the future or anything else of the sort. But what I think they are is an Indication "hence the word Indicator" of where the price could go up/down Period...

P.S. May I say they seem to do and decent job at it.

[TraderABC]

Originally Posted by Dunzy

Hello,

I'm not an expert at any of this but heres is my 2 cents about Indicators.
Indicators are not bout predicting the future or anything else of the sort. But what I think they are is an Indication "hence the word Indicator" of where the price could go up/down Period...

P.S. May I say they seem to do and decent job at it.

Indication of what? If their probability of telling you the most likely direction of the price is not that good, why use them?

[Dunzy]

Indication of what? If their probability of telling you the most likely direction of the price is not that good, why use them?

An Indication of where the price could go "Up/Down" Period...
Use them because it will make your life a whole lot easier, and hopfully Greener.