Hi all . I am starting this thread to help/show a direction for all new traders or not .I will make this as easy as I can because I'm not a good english speaker and i think simplicity is better . It is possible to make money in trading because markets (players) are wrong . Efficient markets don't exist .Why I tell this ? Because bubble exist and big money are made in bubble (you buy in the beginning of a new trend)or when exploding (short sell). Now if you ask yourself how you can catch a bubble or when you are in a bubble you ask the wrong question because nobody knows .Examples : Tulipomania , Silver/Gold, WTI or Bitcoin .
What you can do is to develop a trading strategy/system that consider the RISK and SHOCK Prices(unknown) your best friends .Shock prices can be positive or negative .How can you prepare yourself for shock prices ? Just respect RISK .If you are long on a stock and make a huge gap up then it is a positive shock but if the stock open with a down gap you can loss more than your initial risk .Use 0.5-1% capital for every position .But you need something more,a portfolio.
What you can do is to develop a trading strategy/system that consider the RISK and SHOCK Prices(unknown) your best friends .Shock prices can be positive or negative .How can you prepare yourself for shock prices ? Just respect RISK .If you are long on a stock and make a huge gap up then it is a positive shock but if the stock open with a down gap you can loss more than your initial risk .Use 0.5-1% capital for every position .But you need something more,a portfolio.
Price itself it's an indicator