Trading Tips No 4: Technical Analysis The Holy Grail Syndrome

Everyone knows that the Holy Grail of investing and trading is a myth. Finding a good technical analysis tool that will give you a trading system that wins all the time is called the holy grail of trading. This means that one would never have a losing trade, not to mention consecutive losing trades, never have an equity curve drawdown, and after five winning trades in a row will just keep on delivering winning trades forever! There is simply no technical analysis or system that wins on every trade.

Then why do most losing traders act as if there is or should be a trading system holy grail? You know the symptoms. When considering a new system to trade, losing traders will only consider those that have had a strong winning record for the prior month or quarter. They will jump from one system to another looking for the latest “hot” system, passing up or abandoning good systems that have had a good long-term record of accomplishment simply because they may have lost on the last three, four, or five trades. A good system can and will have five losers in a row. Likewise, a bad system can and will have five winners in a row. Therefore, selecting a trading system based on its most recent short-term record is a loser’s game - it’s the loser looking for the next system with a “holy grail” mentality.

Winners, on the other hand, know how to use good technical analysis that will properly evaluate a trading system to determine if it is good or not. Once they have found a good system and a technical analysis tool that delivers superior returns consistently over a long period of time (years), they stick with it. Even after they have had five losing trades in a row, they stick with it. Because they know while the Holy Grail does not exist, a good system will follow those losing trades with winners that more than offset the losers and deliver superior returns.

Think like a winner.

If you would like to learn more about technical analysis and you have a computer and a burning desire to seize success, then you have what it takes to personally unearth Bill’s Astonishing, step by step trading secrets ... BUT ONLY FOR A LIMITED TIME. http://www.instantprofitstoday.org

Preholiday Trading

The Light Crude Continuous Contract closed at $66.13 a barrel... Read More

Creating a Financial Future - Putting Your Plan Into Action Part 1

This column has previously discussed "picturing the future that we... Read More

Trend Following

Trend following also called momentum trading is the simplest and... Read More

The Conflict of Interest Game

Disgruntled investors are going after Wall Street once again, this... Read More

Mutual Fund Returns May Not Be As They Seem!

Arthur Levitt, during his tenure at the SEC, experienced many... Read More

Seven Investment Terms Everyone Should Know

For those who have never given their financial future a... Read More

Before You Start Investing

There maybe several reasons why you to want to invest... Read More

The Realities Of Market Timing

Market timing systems are based on patterns of activity in... Read More

Stocks, Oil, and Bonds

A barrel of oil bounced to over $60 Thu, which... Read More

Investing and Asset Allocation

Sometimes you spend sleepless nights worrying about which stocks to... Read More

Inflation Proof Your Investment Portfolio with ETF?s

Even though inflation has been relatively quiet in the U.S.... Read More

Planning for Retirement

Almost without exception, people don't start planning for their retirement... Read More

It?s Not the Size of Your Bank Account

You might think that if you win the lottery or... Read More

High Volatility Investments

Penny stocks and options are high volatility investments that attract... Read More

My Way Or The Highway: Give Your Financial Professionals A Good Talking To!

All this talk about Investing is encouraging lately. Over the... Read More

Retirement or Financial Freedom?

In the past most people never retired. They died. The... Read More

In a Time of Need

As I take my leisurely walk with my dog through... Read More

Volatile Oil

The Light Crude Continuous Contract fell from $67.70 a barrel... Read More

The Switzerland of Asia Shines

In many respects, Singapore is the Switzerland of Asia.Begun in... Read More

Investing: Do You Want To Make Money, Or Would You Rather Fool Around?

It always amazes me how much stock market investors resemble... Read More

Super Rules, OK?

Do you rule your superannuation or does it rule you?It's... Read More

When It Comes To Investing, Asking The Right Questions Can Help You Make The Right Decisions

Are you ready to open your pathway to financial independence?Well... Read More

To Retire Rich, Save and Invest Early

If you want to retire rich, start saving investing early.... Read More

The Perfect Mutual Fund

The Perfect Mutual Fund is the one you build yourself!The... Read More

Finding a Broker

"Hey Joe! I need help finding a broker. I notice... Read More