Quote:
Originally Posted by moveit
Trying to predict tops and bottoms is not a very good strategy. Going off historical data, news, and fundamentals in general tend to be unreliable indicators. The only way to make consistent gains in the markets, imho, is to really learn TA and then trade in the moment. Trade what you see, not what you want to see.
I now trade using only a few basic MAs and by plotting critical S/R. I believe this and a solid TA understanding is all the tools you need for the job. Of course you also have to set ground rules and stick by them no matter what. This is easier said then done. Once you develop this discipline however, watch for that momentum and ride that wave.
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Trying to predict tops and bottoms is perfectly fine as long as you know how to play it. Predicting doesn't necessarily mean taking action. Following the trend is the priority but finding the top or bottom is definitely helpful.