Stop looking for deals on the chart!
How many times have you looked at the chart, trying to understand: is it worth taking this signal or not? And how many times in such cases have you made a profit? And to be honest?
Good deals do not need to be specifically sought. You just wait and react. Remembering a couple of nuances ...
About how often it is worth checking the chart in forex trading, as well as about the reasons why our brain sees deals where they are not (and what to do about it), we’ll talk today.
You do not need to search for inputs
Good signals are visible immediately. Instantly. Like a crocodile in the photo above. They do not need to be searched. You turned on the terminal - and you see everything at once. Do not guess, do not finish, do not change the scale of the graph (narrower / wider), but IMMEDIATELY see the entrance.
If you do not see a signal on the chart in the first 1-2 seconds, it is not there.
In general, if you know at least 4-5 techniques of technical analysis, if you wish, you will find a signal in any direction at any time on any chart.
Eurodollar, a chart as a chart, nothing on the “bare” chart on Price Action catches your eye, lazy consolidation, worth the wait.
Let's sketch the Stochastic chart:
What do we see? Stochastic shows us overbought. Must sell!
Next, the brain needs confirmation of our innocence. We put in a trend line and see that there was a false breakdown of the trend, the price is moving down, that's it - you urgently need to sell! Ahhhh !!!!!
Now, let's find a buy signal on the same chart.
We draw a trend, there was a rebound! And that bounce is a pin bar! The price just rolled back to its half, a great time to enter. Also, the PSAR indicator (green dots, for added confidence, we need to be right, right?) Is under the price. There is no doubt - Buy for the whole cutlet.
So, at any time on the chart, if desired, you can find any signals. Impatience, a desire to earn money, bitterness after a previous unsuccessful one, or euphoria after a successful deal - all this clouding our brain and we are looking for deals where they are not, proving along the way to ourselves.
The longer you look at the chart, the more trades you see
According to scientists, our brain works in such a way that the less often we meet a familiar and familiar phenomenon, the more often we begin to notice it.
Ponder this phrase. As soon as you search for deals - you find them)
An interesting experiment was conducted: in a district with a high crime rate, teams of volunteer volunteers were introduced, who reported any violations of public order to the police.
Initially, only serious crimes were received. However, then the crime rate in the area dropped significantly and the vigilantes began to call the police for less significant reasons: crossing the road in the wrong place, someone walking down the street at night and the like nonsense ...
In another experiment, people were shown several sets of photobots with completely different facial expressions: from frightening to completely friendly. And they asked to choose from them those that look menacing.
At first, people quite adequately chose the most “brutal” physiognomies, but then scientists began to remove them from the samples, leaving more “ordinary” people. And people began to call threatening those people who at first seemed harmless to them.
Why? Because they were told to FIND threatening persons.
The experiments described above clearly show that when you are looking for something, you will definitely find it. Like deals on the chart.
Our brain is trying to compare all the facts in such a way as to confirm our point of view. And this leads to losses.
The only way to deal with this effect, according to psychologists, is to determine your goals as accurately as possible and write down specific formulations.
In the case of trading, the cure is simple - a checklist. We have a separate article about this.
If the transaction matches all the checklist items, there is a signal. If at least one does not correspond - you are just bored ...
Practice the demo
Naturally, installing a new system on the chart, you will not see the transaction in 2 seconds. Any new strategy requires you to get used to it. The demo account helps with this.
How long does it take to get used to the new trading system? Depends on the timeframe and frequency of transactions. If this is intraday trading, a week is enough. If daily charts (D1) - then about a month.
How often do you need to check the schedule?
What is your timeframe - check it. If D1 - once a day, If H1 - once an hour. And so on. On timeframes below D1, you should limit the range of trading when you are looking for signals. Checking the charts at night on low timeframes - usually it makes no sense.
To summarize: the more you peer at the chart, the more you have the wrong (they can be profitable, given the random nature of the market, but not according to the system) transactions. The best signals are visible immediately, literally in the first second. But, of course, if you have experience working with a strategy and correctly identifying signals from it, a demo account will help.
Oddly enough - the same thing in life. Waiting and responding to situations, proposals, events is often much more effective than trying to set goals and achieve them. But about this some other time .... )