Indicators are used naive Forex traders. They rely on reading the indicators to find the best possible trades. But executing random trades based on the reading of the indicator is a great mistake. The amateurs don’t even know the purpose of the indicators. These are the tools that will allow you to filter the false trading signals. With the help of the indicators, you can also get a strong clue when the trend will reverse.
Even after knowing all these premium benefits, you might wonder why naive traders still trade with indicators. This is because they don’t have enough skills to trade raw price data. In this article, we will highlight some of the key reasons why the pro traders always suggest to ignore the indicators.
Limits your analytical ability
If you start trading with the indicator based trading method, your analytical ability will be limited to a great extent. To make a big profit, you should learn to deal with the raw price movement with a high level of precision. For that, you must have a strong analytical ability. For instance, the traders find the overbought and oversold condition of the market to find the perfect price reversal zone. Eventually, they forget the use of the support and resistance level.
You should learn about the support and resistance level trading strategy to become a professional trader. By using the knowledge of support and resistance level, you can find the overbought oversold state of the trading instrument.
At times you will miss many good trade setups due to false signals generated in the lower time frame. To test the lacking in the indicator you can use a demo account, try it now. The demo account will give you access to the trading environment where you can place the trade without risking any real money. With the help of the virtual dollar, you will be able to earn big profits. If you use the demo account for a few months, you will be surprised to learn the false signals generated by leading and the lagging indicators. You would have never faced such problems while looking for the trade setups by using the price action confirmation signals.
Quality of the trade setups
If you trade the market with the help fo the candlestick pattern, you will be able to find the best trades. The quality of the trade setups will be much more accurate and you will be able to make more money. On the other hand, if you start trading the market with the help of indicators, you are going to lose most of the trades. Within a short period, you will blow up the trading account. Unless you learn to trade the market with the help of quality signals, you are always going to lose money. So, working hard to learn more about this market so that you can find trades based on the raw price movement. Once you get good at analyzing the raw price data, you can easily make a big profit without risking too much money.
Low-quality trade setups
Do you know that if you trade the market with the indicators, you are going to lose money due to the low-quality trade setups? The indicators can’t give you a precise execution for the trade. Most importantly you will be losing trades since you won’t be able to set a tight stop loss. To become a professional trader, you should learn to use the stop loss in a very precise way. With the help of stop-loss, you can limit the risk. Those who think they can win big trades with high risk are making a big mistake. The risk takers always lose money at trading. So, think about the safety of your investment and learn to deal with the raw price data.