These days people are much more fascinated towards Mechanical Models aka Auto Buy/Sell Signal Softwares and Autotrading Softwares. However at some point of time they do find themselves still loosing in this markets even after adopting various strategies. Here are some points which explains why a trader fails by adopting a trading system with half baked knowledge.
1)You think Buy Sell Indicators are predictive in nature. However in reality the mathematical indicators aka Auto Buy or Sell Signals dont have brain to predict the randomness. And eventually you will fail at some point of time.
2)You want a Buy/Sell Indicator that makes money
3)You want a Best Intraday Buy/Sell Indicator and you dont know how to gauge a Buy/Sell Indicator.
4)You are still trading with subjective bias like Trading Patterns, Elliot Wave,Gann, Fibonnaci, Divergence etc along with your buy/sell indicators.
5)You are jumping from one stock to another stock randomly while following the Buy/Sell Trading rules and selecting the trades again randomly.
6)You are searching for double confirmation by using multiple buy or sell indicators or correlating your indicators with News Events, Global Markets, TV Channels/Analysts or Comparing the Brokers/Tipsters/Analysts calls with your Signals.
7)You dont know how to backtest a trading system which explains the nature of the trading system. And probably you dont want to spend much of your time in learning the basics of trading system.
8)You loose faith after 5-6 continous losses in your trading system.
9)You are probably trading the signal in a wrong timeframe.
10)You dont want to trade all the signals.
11)You are a lunch time or dinner time trader and you want to trade the signals only during those times.
12)Taking the trades based on your anticipation of future Signals rather than trading the actual signals.
13)Averaging the trades when market moves against your position a little.
14)You are too lazy in trading and following the Buy/Sell rules.
15)You are using the most commonly used trading system among the people that is invented somewhere around 1960’s or 1980’s.
16)You learnt a simple trading system from the most popular book and you are using it.
17)You dont know whether the Buy/Sell Signal indicator will work for a particular trading instrument or not and you are willing to take a risk by trading it.
18)You seen the Best part of the trading system and you got confident and you want to trade the subsequent signals.
19)You dont know the mathematical logic behind the buy/sell indicator. However you are blindly interested in following it.
20)You had seen Paid Buy/Sell Indicators Advertisement in Facebook/Twitter which gives 85%-95% guarenteed success and your are interested in purchasing it at any cost.
Source : Marketcalls
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