One of the biggest problems traders face is information overload. There is just so much data to crunch these days that it's easy to become overwhelmed. Coupled with ever changing strategies, and it's easy to see how confusion can strike.
We all know that the market is constantly changing, and that we need to adapt our strategies constantly to stay ahead of the pack. Coupled with this however is the fact that we should never change too many things at once.
From the beginning one should integrate into their trading, base practices that will span all strategies - behaviours and chart elements that will not change between strategies, and will become a familiar foundation for you to work on.
One of these practices is to ruthlessly make your charts more efficient through simplification. Always be looking for ways to make the information you see easier to process. There are a number of generic indicators available to do this these days.
Use color and graphics in place of text. We process visuals way better than we do text. Here's a quick example. If you only trade at certain times of the day, then use an indicator to color the background of your chart. This will be a lot easier than reading the time axis.
Another area of optimization is the use of sound. This is especially effective for processing events. Need to know when a new 30 minute bar starts, or when a signal fires? Use an audio alert.
Look for ways to combine multiple indicators into one. If you have multiple filters, combine them into a single visual one. Reduce what you have to look at on each chart.
Always be simplifying. Find methods that you can apply to multiple strategies. Whichever system you use, be it crossovers, divergences, pivots or something else, these principles will make your daily trading easier and more fun. - 23309
We all know that the market is constantly changing, and that we need to adapt our strategies constantly to stay ahead of the pack. Coupled with this however is the fact that we should never change too many things at once.
From the beginning one should integrate into their trading, base practices that will span all strategies - behaviours and chart elements that will not change between strategies, and will become a familiar foundation for you to work on.
One of these practices is to ruthlessly make your charts more efficient through simplification. Always be looking for ways to make the information you see easier to process. There are a number of generic indicators available to do this these days.
Use color and graphics in place of text. We process visuals way better than we do text. Here's a quick example. If you only trade at certain times of the day, then use an indicator to color the background of your chart. This will be a lot easier than reading the time axis.
Another area of optimization is the use of sound. This is especially effective for processing events. Need to know when a new 30 minute bar starts, or when a signal fires? Use an audio alert.
Look for ways to combine multiple indicators into one. If you have multiple filters, combine them into a single visual one. Reduce what you have to look at on each chart.
Always be simplifying. Find methods that you can apply to multiple strategies. Whichever system you use, be it crossovers, divergences, pivots or something else, these principles will make your daily trading easier and more fun. - 23309
About the Author:
About the author: Dave Sumter is the owner of ChartCandy.com, a site focused on Ninja Trader. He also writes about internet entrepreneur topics on his blog.
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