Do You Want to Lose Money as a Trader?

If YES, Trade with Indicators.

People from different backgrounds take up trading in financial markets; a very complicated business though. Many individuals often depend mostly on technical indicators as their only trading strategies because they get attracted by the ‘get quick rich’ strategy. But this can lead them into serious trouble for it is an error based on much dependence.

Traders always seem to use technical indicators such as RSI, MACD, Bollinger Bands, and moving averages because they are based on past prices to give signals.

As a trader, if you want to blow your account use trading indicators.
Using indicators as a trader is a scam.
The easiest way to blow your account is to make trade decisions using trading indicators.

What if I say you don’t need to be a chart guru to be profitable in crypto…
The gist is, what makes the profit in crypto is simple.
Not the complicated crazy chart
lines you often see on traders computer or in trading view.
It makes sense to say that trading with indicators puts you in the box that makes it very easy to lose your money.

What you need to know is that companies who created those indicators are also traders, if it’s a perfect one, they won’t make it public.
They will use it to suck all the money or liquidity in the market.
But they push out there as a way to predict the trading actions of retail traders.

Don’t believe me, read to the end.
What if institutional traders and hedge fund companies are trading against traders using indicators, mostly retail traders?

Here is why…
If 10000 traders are using the Bollinger bands indicator to identify market trends. It simply means that the 10000 people are going to end up with the same results. Let’s say the Bollinger bands suggest that the market trend is bullish at a certain price zone. All the 10000 of them will open long positions.
Remember, these indicators were created by trading firms and institutional hedge funds. So, the moment they saw that 10000 traders who in most cases are retail traders were going long on the market.

What do you think the actions of institutional investors and hedge funds companies who created those indicators and convinced you to believe it’s always a winning strategy will be?
They will short the market.

Why?
(1) The 10000 retail traders are going to be in demand.
(2) The institutional traders are going to be supplied.
(3) The number (1) is making his trading decision using the indicator.
(4) The number (2) is making his trading decision using only price actions and in most cases the data the indicators feed them — in this case the instructional investors or traders are the creators of the indicators.
(5) The 10000 retail traders will be trading against the very few institutional traders and hedge fund companies who are armed with large capital.

Who do you think will lose?
Retail traders.
That’s why most times, using indicators can be the easiest way to lose and be frustrated in the crypto industry.
Not excluding forex, stock, option, and futures traders.

Most profitable traders don’t use indicators.
They make trade decisions mostly using fundamental analysis and technical analysis.
However, the technical analysis is not the complicated and sophisticated drawing of multiple lines on the chart using a bunch of indicators.
The aspect of technical analysis focuses on “Price Actions” and Volume.
When you talk about Volume, you talk about learning how to read candle sticks.
And when you talk about price actions you talk about three things;
Demand and supply
Support and resistance.
Candlesticks and chart patterns

Note, I’m not saying indicators aren’t a great way to identify what to buy or sell in the market.
A few indicators are.
But you need to understand that most indicators are lagging indicators.
Meaning that it only reads the market after a buy or sell move is made by bidders or ask.

Technical indicators help traders but it is not wise to depend too much on them because such dependence can be very costly in financial terms. Any trader wishing to succeed must concentrate on comprehending market mechanisms sharpening risk control techniques and coming up with an all-encompassing trading plan.

Trading requires dedication, continuous learning, and a balanced approach for people to be successful; in other words, there are no shortcuts.

Thank you for your time!

Warm Regards>>>Paul