Can I earn ONLY using technical analysis?

Many people are convinced that somewhere in the world of forex investment there is a magical method called the Holy Grail, which with the appropriate configuration of indicators will allow you to earn money in the long run. In today's article I will tell you what my opinion on this subject is and I will try to support it with logical arguments.

What will you learn from this article?

  • Why are we looking for the Holy Grail?
  • Why indicators do not work
  • How to fix it

A wrong view of the market.

First, do a little experiment. Open any platform and add Stochastic with any parameters. We all know how the Stochastic works, right? Your opinion is to look for good signals to open a position. I am convinced that you most caught your eye with these moves that perfectly entered and allowed you to catch the trend by your legs or ears. This is how our brain works - if we are looking for something that we assume that it can work, then only the signals that could give us the most money are most noticeable to us. And here the belief is created that if we managed to catch the perfect play several times, there must be something to it and there is a golden mean somewhere. In my opinion, you need to look at investing statistically - if a given indicator deals with catching highs and lows, it must eventually be successful some time. However, I can assure you that if you play only with one indicator (or several), you will reset your deposit in the long run. Why? Because other people had already come up with the same ideas and no one was able to get anything out of the technical analysis itself.

We need this thing.

I said from the very beginning that investing in binary options it doesn't come down to the pointers themselves, but also to adding something apart. Remember that YOU are investing, not the machine. I often catch myself breaking the rules of the strategy or configuration of indicators because I see that the current parameters do not relate to the current market situation. The day before yesterday I was investing with the breakout method and the Stochastic, with the default parameters, told me to close positions, and looking at the chart, the price practically did not change the rate and you could see a clear blockade on the resistance. So I had to slightly change the parameters to make the indicator refer to the current market. The conclusion is simple - one set of parameters does not fit every situation and you decide how to adjust it to the market that YOU observe, not the indicator.

So how to invest?

There are many methods and I can't say exactly how to do it, but I can give you tips that I hope will open your head and change the schematic approach to investing. I admit that when I came to these conclusions myself, I felt more aware and saw what to do in specific situations.

A specific strategy - you need to find a strategy for yourself that you will use in every situation. Don't change the method every few days as you will be moving in circles.

A specific direction - you need to specify where you expect the price to follow when the signal is generated. For example, I believe that when the two lines cross, the price will go up. Determine where you will close your positions (for example, on a reverse Stochastic). Never set levels where the price will hit in order to close a position there - no one knows where the price will stop so it is wandering in the fog.

Group items - I recently fell in love with this approach which improved my results a lot. The point is, we'll never get a hole in the market and spreading our games over several positions gives us a better chance. Below I am presenting a screen of the breakout strategy. I opened two positions so I had two chances to catch the leg price. Each subsequent item was twice as large.

Get out of position - analyze the market in terms of price patterns and how the price is currently moving. If everything indicates that the price will go in the opposite direction than you expect, just cut your losses.

Solution for cash seekers

If you are looking for ready food, I have an interesting offer for you. I recently launched a project whose task is to bring together investors who invest by the same method. The goal is joint learning and development. By clicking here you will move to a Facebook group that anyone can join. However, the investment method itself is based on set-up notifications from greyhound. This method has an advantage over most strategies because it is based on price movement - that is, we react to how the price has behaved. So we have a high probability of winning. I publish my games in the group and help the uninitiated. Please note that this is not the holy grail. It's a method that the user learns to play and over time understands what it's all about, when to get out of position and the like.

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