A little controversy never killed nobody…
So here is the thing: There are probably more than a million different ways to trade. Everybody wants to know the right way (or more so the best way)? Well, you´ve heard it before there is no clear answer to that.
To me it´s simple: Do what works for you.
I am a person that never gives up. Even if I have found a system that makes a few Pips I wanna double the amount of Pips.
I discovered more in the last 3 months of trading than in the last 4 years combined. Trading is not your typical course in college. You can´t read 30 books, write your exams and graduate and then you get everything you want and know everything you need to know (minus the experience).
If you want to succeed you need to do things differently. On the other hand there are numerous reasons to follow a main concept that not only the big guys use but the masses. Why? Because this leads to certain periods, levels and areas which are “respected” by the market. It´s ironic that the masses don´t make money in this market and yet every trader should respect the levels that are used, driven and especially watched by the masses (& the big Players).
If you combine what I said above this leads to a new Concept:
We need Areas and Levels that are useful. This means we need to find important Areas where the market is acting with structure, in a way we “expect the market to act”. Yet we can´t “predict” the market. We must act according to our rules and simply execute.
But I don´t like the simple concept of Support and Resistance or Supply and Demand. It´s too basic and used by too many in it´s simplest version too only use that without any other confluences.
We always have the problem that Support and Resistance doesn´t last forever. So what if we only have this one “confirmation”. That´s not enough if you ask me. Trends are also very important but what if you enter them too late? Yeah that´s another problem most people face. If a trend is well established there is a high possibility that the market will reverse because you are too late. On the other hand if you trade against the trend there is a high chance that you will lose because the trend is still going on.
We need Trendlines in the right constellation which then act as a general direction and more importantly as Support and Resistance. If broken they need to get confirmed by various other factors.
One other important thing is looking on a higher timeframe (H4) while executing the trades on the lower one (H1).
Then you need another confluence to know when to exit your trades. You can use Fibonacci Levels or other S&R / S&D Areas, too.
Risk Reward Ratios are also not important. Either you win most of the time with a bad risk/reward ratio and make money or you lose often with a good risk/reward ratio and make money. All that matters are your Pips at the end of the month. But don´t underestimate the psychological power of trading and certain strategies. If you “lose” often while actually making money this might have an effect on your overall performance.
Indicators are NOT a reliable source of Signals but they can act as one confluence. I tried over 1800 Indicators and just a single one has worked til this day and that´s the only one I use in combination with other confluences such as Trendlines, S&D Areas and others.
Always keep in mind what you do and why you do it. Reflect. Don´t overcomplicate things. Make it simple and don´t lose faith.
I never understood what people meant by “trading with various confluences” but I developed my own trading style (which is important) and now apply the same technique to my own charts combined with my own principles.
