In this episode of Truth About FX, Walter digs into the subject of trading without using indicators. And, what are the best ways to go about this? He also talks about the pros and cons of using indicators, and how this affects your psychology.

Also, did you know that there are three types of traders? You can learn which type are you and more in this episode

Download (Duration: 05:26 / 6.22 MB)

In This Episode:

00:32 – off from trading

02:09 – hit a spot

03:21 – fine tuning

05:12 – get-go

Tweetables:

Look at what your beliefs are. [Click To Tweet].

Align your system from the beliefs from the get-go.  [Click To Tweet].

You do not have to blame it on the indicators.  [Click To Tweet].

Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.

Hugh: Hi, Walter. Today’s question is from a student and he asks: I’ve started using trading indicators and I failed. I took 6 months off from trading and now I’m trying to relearn trading without indicators.

So, I guess the question is how does he do that and what are the best ways to go about that?

Walter: That is fairly tricky. One of my beliefs is basically what happens with people is that indicators — I really don’t have anything against indicators, if you think you can use them, fine. The issue I have with indicators is that it makes it difficult for you to stick to one thing because you will do exactly what this person did.

Which is you trade for a while, you use the indicator or indicators that you’re using, and then you hit a drawdown, and then you blame it on the indicator, and then you pull another one out of the hat. You’re stuck in that cycle.

To me, that is the main issue with indicators. It’s not really that you cannot trade with them or you cannot make money. Of course, you can. I think also, if you’ll talk to some of the older traders, what they’ll tell you is that — and I am talking about older indicator based traders that used indicators in their system, they’ll you that — they don’t really need them.

They can tell what is going on their chart without looking at the indicators. They know that they’ve got a trade on or they should get out of the trade or whatever so this is what I would suggest for this person.

You’ve been trading for 6 months with indicators, it didn’t workout and now you are trying to relearn how to trade without indicators. There’s a couple of things you need to do. First of all, you need to look at what your beliefs are.

Most likely — and in the shownotes for this podcast , I’ll put that video down to show how to determine what kind of a trader you are but —  the important thing to know is that you’re one of the 3 different types of traders.

You are probably either the type of trader like who likes to go with the flow and trend trade and follow a strong trend, or you are a reversal type trader where you look for the market to hit a spot and tu...