If you’re a new trader, it can be frustrating and overwhelming to process all the tools available to you. Using indicators in trading are just one avenue to help you make an informed trade. But traders seeking to make informed decisions about a potential position should be very careful before blindly putting their faith into any one particular tool. In this article, we discuss some of the potential pitfalls of using indicators, and what you could do to avoid them.
Many Indicators are Scams
Most traders have heard many war stories from experienced traders of bad trades, a streak of bad trades, or even months or years of bad trading. The novice trader may ask ‘How long will it take me to be profitable?’
If you’ve heard of risk management, it may be in the context of some stuffy academic formulas that have little application to your everyday trading. On the other hand, many presentations of practical risk management for day traders are lacking in some very important ways.
Get market tips, commentary, special offers, and discounts; direct to your inbox! Get early access to new features and announcements about upcoming special guests in our community.