Why you need to stop using indicators

Every retail trader knows that indicators are helping tools. They allow traders to assess the quality of the trade setups. You might think pro traders are always using the indicators but in reality, they are just making things easier without even using the indicators. You need to learn the proper way to use the indicators in Forex market. The rookie traders often get addicted to an indicator based trading strategy and start losing money. If you overload the trading chart with indicators, you will barely see the raw price movement. You need to focus on the price action signal to find the best quality trade setups.

Though there are many benefits of indicators in real life trading, still some professional prefers not to use them. Today, we are going to highlight the key reasons for which you should quit using the indicators.

Leading and lagging indicators

If you learn more about the indicators in Forex market, you will find two different kinds of indicators. The first one is known as the lagging indicators. It generates late signals based on the previous price movement of a certain asset. The second type of indicators is known as leading indicators which always generate early signals. Basically, you will never be able to find real-time signals based on indicators reading. For this reason, many experienced traders often consider indicators as a waste of time. Try to learn the manual art of trading based on raw price data. If necessary, use the demo account to create a simple price action trading strategy to trade the market.

Makes things complex

Those who trade the market with indicator based trading strategy, always have to deal with complex ideas. To avoid such problems, the traders at the ib introducing broker always prefer to trade the raw price data. Making things complex will never help you to make more profit in the Forex market. Some of you might think a complex trading strategy will help you to find good trades. But in reality complex process always make things difficult when it comes to the trading business. So, how do you create a simple trading strategy? The answer lies within the use of indicators. If you rely on an indicators based trading strategy, be prepared to do tons of hard work. On the other hand, if you learn to trade the market using the price action signal, you can easily make a profit with simple logic.

Dealing with the volatile market

Those who trade the market with an indicator based trading system, always lose a big portion of their investment during high impact news. Indicators are nothing but a bunch of code. It can never assess the sentiment of the market. After a major news release, most of the major currency pairs tends to exhibit an extreme level of volatility. During this time, if you use the indicators reading, it's normal to get confused and make huge mistakes. To be precise, you can't deal with the volatile market with an indicator based trading strategy. You need to keep things simple to make consistent profit from this market.

Developing your mentality

Without having a stable mindset you can't deal with the complex price movement of this market. In fact, you need to learn the proper way to embrace the losing trades. If you stick to the indicators reading, you can't develop your mentality. Try to learn a manual trading strategy using simple price action confirmation signal. Stop making things overly complex by using the indicators.

If required, open a demo account with Juno Markets and try to develop your skills. Focus on a simple support and resistance level trading strategy and embrace the losing trades. Once you feel confident in your performance, switch to the real account. Never expect to win all the trades. Trade this market with simple logic and be a confident trader.

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Monday, 14 October 2019
 
     
 

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