Posted by: joetradingplace | March 13, 2015

Oversold and Overbought

As traders we know that we can’t predict how far the market will move. So traders who buy because the market is oversold and sell because the market is overbought are trying to play the game of predicting how far price will move. These traders will find it difficult to make significant gains in their trading. If price is moving down, isn’t it just easier to sell and go with the market sentiment, than try to outsmart price. I am glad to have made a change in the way some people trade…there are a couple of followers who have been sending me emails with their trades. They have been making very good gains since they started trading with the trend. You have seen some of my trades here they are all trend following and yu have noticed how profitable they have been. With trend following yu might have small losses, but i rarely have my full SL order hit because i manage my trades as the market moves in my favour. I take partial profits and let the rest run because i don’t know how far the market will go, so i want to be in the trade for as long as it is moving in my favour. I know how much i will lose, but i don’t know how much i will gain, because i let the market predict that.

Please guys and gals, stop looking for fancy trading strategies, stop buying fancy EAs, most of them are only sold by people who have failed in their trading. I don’t know any trader who have made money with fancy EAs…but i know a lot of traders who had made millions by trend following…grab Michael Covels book on trend following and yu see all the big successful traders who only traded trend following strategies. For all the traders who are struggling and some who are breaking even, or making small gains, i kindly ask you to try Trend following and you will notice a significant difference in your P&L.

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