Part 2 of 3 - Stuart McPhee's Interview with Ray Barros

[MADDOG531]

I never made any money trading UNTIL I used indicators! Trading purely on price action never worked for me. By scalping I have made between 1-5% every week for 6 months now. Just my 2 cents.

[patriotsundergod]

(video notes)

Everything you can do with technical indicators you can do by observation and statistical analysis. The problem is that people stop understanding what the nature of the markets are, as this relates to the emotions of fear and greed by groups of market participants, which is reflected in the underlying data. Unnecessary abstraction from the underlying data (open, low, high, close, volume) caused by reliance on complexity tends to act as a barrier to intuitive understanding.

[patriotsundergod]

Ray thinks that indicators are a necessary step for beginning traders to understanding how the markets work from a mechanical perspective, but they should eventually outgrow them.

[patriotsundergod]

You have to understand the markets through experience. The magic indicator doesnt exist. They may be helpful in defining your rules in the beginning, and enforcing discipline with mechanical precision. In that application indicators may play a part.

[jayangli]

@patriotsundergod r u trading? I trade and if you want to talk message us