This is another book worth reading. It is about RM90 but it worth the dollars and time. He is an Australian. Below is a clip from youtube. Search for more info, if you are interested.



This presents some interesting questions. If there are hundreds of indicators, then which one(s) should you use? Do you actually need to use any indicators?

These questions have troubled traders for years and will continue to do so. I went through the search myself, looking for the right indicator to use, and every time I heard someone new present a seminar about trading, I ended up considering the indicators that I had learnt about during the presentation in my own trading. I used to think like a lot of people do ' that is, If he (or she) is using these indicators, then they must work, so I am going to use them.

Even though I have introduced these indicators to you, I must honestly tell you that I personally dont use any of them, and havent for a number of years now. The indicators discussed in this chapter were chosen because I believe them to be the most popular indicators, used by the greatest number of traders.

I am not saying that they dont work or that they wont assist you with your trading. I tested the various indicators to see if they would provide me a significant advantage in my trading, and for me, they all came up negative. I therefore questioned the need to use any of them in my trading. The truth is that no indicator is infallible, and they often provide false signals. If they dont provide a marked advantage to you, if they dont provide you an edge, then why use them?

The only indicators I use are a moving average and a couple of very simple indicators I developed myself, and their use is limited to my entry decision. The whole premise behind my use of indicators is to keep it simple.

By Stuart McPhee

TEH