First off, let me say, the following post is my opinion from speaking to people on this forum and a couple of close friends that I have taught how to trade. I wanted to start a new thread to discuss the use of common sense in trading which I believe, is greatly underused. In my opinion, a lot of people want systems where they can be "mindless" and just push buttons because some indicator or combination of indicators told them to do so. People want a concrete way to look at this market so no thinking is required. Now, I understand that a trader should have some type of rules or rules that they need to stick to keep emotion out out of trading but I think that sometimes traders get too caught up in their "rules" and do not use their brain. Again, I am not talking about be too subjective in trading, just a little thought.
I have an example. I use candlesticks in my trading. When I first started trading I had no idea there were many books trying to explain the different patterns and what they meant. I would see an uptrend and then a candle with a long wick to the upside and a small body. I thought, ok, this is losing some momentum. I didn't need a book to tell me that. This is just one example, I have many. I am really curious as to how many people realize that they use a little common sense in their trading or that maybe they need to incorporate more. Also, if anyone can give some examples. My main thought after visiting this forum is that too many people over complicate trading and I feel sorry for them. If a trader just put all the forex jibber jabber to the side and used a little more common sense, how much more successful as a trader they could be.
I have an example. I use candlesticks in my trading. When I first started trading I had no idea there were many books trying to explain the different patterns and what they meant. I would see an uptrend and then a candle with a long wick to the upside and a small body. I thought, ok, this is losing some momentum. I didn't need a book to tell me that. This is just one example, I have many. I am really curious as to how many people realize that they use a little common sense in their trading or that maybe they need to incorporate more. Also, if anyone can give some examples. My main thought after visiting this forum is that too many people over complicate trading and I feel sorry for them. If a trader just put all the forex jibber jabber to the side and used a little more common sense, how much more successful as a trader they could be.