New York Traders Expo Interview
In this video Stuart McPhee talks about technical methods he uses at moneyshow.com video networks. He takes presentations all over the world and he always speaks about the importance of having a trading plan. He is a technical analyst and he loves looking at charts. The big advantage of looking at charts is the price which ultimately determines if you make profit or not. When Stuart started out, one of the things he was very fascinated of was technical indicators. When he sees them on lines going everywhere he feels that there is something mystical at them and he will receive some power from them.
At some point in time during his journey to trading he realised that the indicators are not providing him any significant advantage so he decided to go back to the basics and keep it simple. He loves looking at charts, he looks for reverse signals in his short-term trading, he use moving averages for identifying medium-term trends but apart from just some picks he is really trying to keep it simple. It is easy to implement, is easy to follow and it generally works.
When people start trading, they think trading is easy, but then they realise is not so easy. So if it is not easy and is difficult to do, then you need a complicated plan to make it work. And with all those indicators things get complicated and trading does not need to be complicated, does not have to be complex. The principles the rules are very simple concepts. And technical analysis and keeping it simple just looking at the price really works. Many people get through that, they see indicators, and then they just see that they are not providing any advantages and all they need is to look at the price which is the best indicator of what is happening.