What strategy do experience traders use?

I recall reading a post in a thread that stated that most newbie traders start off with moving average crosses.

Since I am a newbie and I am also using a MAX system, I was a little rattled, as if I am somehow not doing the best sort of trading.

If you are an experienced trader can you put this in perspective and expand on it?

Is there some kind of evolution as a trader to a higher level that can be defined?

That's an interesting point! I am a begginer trader too even though i am not using MA for my trading. I trade primarily based on MACD divergence. I guess the reason why begginers rely mostly on MA is because of the fact that the concept is easy to understand. I was courious myself what indicators and strategies do the more seasoned traders rely on. I hope you guys do not mind shareing.

A MAX system is not necessary newbie, if you choose it with knowledge.

To be very short, automatic systems fall into 4 categories:

1. Trend following systems
2. Breakout systems
3. Volatility based systems
4. Market range systems


After reading tons of aticles, books, webs, ... it seems to me that the real advance in trading a system is to have a capital big enough to trade more than one system at once, so the volatility in returns is much smoother and the equity rise steady.


If you're talking about trading methodology (which setups to use for entering or exiting a trade), then yes a MAX setup sounds newbie to me.

There are plenty of setups to use, publicy available on Internet. I would suggest to start with dacharts.com (not specific to forex), which is a very good starting point to investigate other people's tecniques.


But the bottom line is always: if this is YOUR method and it works for YOU because YOU made it, then is a good method :-)

The simplest of systems work wonders. How about using your MAX system with a bit of fundamental analysis to confirm your direction? Every system gives wrong signals several times. Your success will depend on your ability to identify such signals.

I guess, a "newbie" starting off,depending on what they have read before they decide to start trading is what they will try using. Many "seasoned" traders will think they can make something better and keep adding and subtracting to a system with and in the end still not have much more than they have started with. They will spend hours and hours looking for the "holy grail" of indicators that will get them in a trade and out not missing any pips. Once they realize that is impossible to get every pip out of a trade before losing a couple because of lag in any indicator, they look back to the basics. Before you know it, they drop every indicator they try and base their trading on price action/trend lines/support and resistance. Looking back at all the wasted time trying to make a system that meant nothing at all.
Don't get me wrong. There are some pretty awesome systems out there I am not gonna mention any of them. Think about how many traders there are compared to the awesome systems there are. Many more traders than systems. There are quite a few guys here at FF that use nothing more than price action and a few lines.

Try www.WoodiesCciClub.com

Applicable only for day traders glued to the PC.

I am one of them.

Experienced traders use a strategy that best suits them. There are a million ways to make money in the markets - it's up to you to figure out which one you are comfortable with.