To OrionsWay and SunTrader.
Sometimes i cant believe what i read considering you guys started trading way before me.
When you say... "crowd fails, so i trade against the crowd"
Wrong... and lets put it in simple terms.
I buy a pair... after me ppl start to buy too. Price rises... i make money.
Did i went against the crowd? No! I traded with the crowd but before it.
I buy a pair when the crowd is selling... Price declines... i loose money.
I traded against the crowd, i lost money.
Conclusion? Trading is about trading with the crowd, but before it.
Not every trader that fails, go in opposite direction, many times they go with the right direction too late!
Now regarding MAs... i liked the definition "fair value" for a certain period of time.
Why ppl fail using MAs? Because they use it like this:
"hey... theres a MA there... i will put my SL behind it"
But i ask... who the hell told this guy that the MA he chosed is the fair value for the crowd?
Conclusion? MA's should be used after they act as support/resistance (bigger picture charts) and not against momentum, and not only by themselves. After acting as support/resistence we enter when we see an improving in the next high/low or a clear rejected retest, and if we can, a good combination with funds would not hurt too.
We loose time and miss the initial pips? Sure..!
We don't loose money and catch the big pips trend anyway? Oh yeah.
Sometimes i cant believe what i read considering you guys started trading way before me.
When you say... "crowd fails, so i trade against the crowd"
Wrong... and lets put it in simple terms.
I buy a pair... after me ppl start to buy too. Price rises... i make money.
Did i went against the crowd? No! I traded with the crowd but before it.
I buy a pair when the crowd is selling... Price declines... i loose money.
I traded against the crowd, i lost money.
Conclusion? Trading is about trading with the crowd, but before it.
Not every trader that fails, go in opposite direction, many times they go with the right direction too late!
Now regarding MAs... i liked the definition "fair value" for a certain period of time.
Why ppl fail using MAs? Because they use it like this:
"hey... theres a MA there... i will put my SL behind it"
But i ask... who the hell told this guy that the MA he chosed is the fair value for the crowd?
Conclusion? MA's should be used after they act as support/resistance (bigger picture charts) and not against momentum, and not only by themselves. After acting as support/resistence we enter when we see an improving in the next high/low or a clear rejected retest, and if we can, a good combination with funds would not hurt too.
We loose time and miss the initial pips? Sure..!
We don't loose money and catch the big pips trend anyway? Oh yeah.