Reasons for The Buy / Sell Signal Indicators to Fail – What you should know!

Trading is of the most influencing modes or making money, which millions of people prefer to choose. There are different platforms, creating trading opportunities. In addition to it, the introduction of new software and technology further encourages Auto Buy/Sell through the Auto Buy/Sell Signal software and Auto trading Software.

Although this auto buy or sell system appears to be beneficial, they still cause loss to the traders, no matter you adopt various strategies.

Reasons for the Buy / Sell Signal Indicators to Fail

There is nothing to deny that 95% of the new traders lose and fail in trading, while leaving the market with huge losses and frustration. To understand the reasons causing such loss to you.

Here are a Few Points to Brief About

  1. There is no reliable indicators or software to produce 100% positive results
  2. The indicators will tell only the price action, which is already told to you and by the time you wait for confirmation, your buy or sold price differs
  3. There is until now no effective tool or software available to predict the short term price action. There is also no guaranteed prediction for long term position
  4. How many traders do really understand the price movement and the combination of indicators
  5. Lack of knowledge or experience in trading with raw price data, regardless of the indicators available
  6. Remember, the Auto Buy / Sell Signals cannot firmly predict the price movement or the randomness. They are not predictive in nature. This may result you to fail at some point
  7. A Buy / Sell indicator may not work always successfully, to make expected money
  8. When you fail to gauge Buy / Sell Indicator, you tend to lose in trading
  9. People still trade with the subjective bias such as Divergence, Elliot, Trading Patterns and many others in addition to trading with buy/ sell indicators
  10. Jump from one stock to another within a short time period and lack of following the trading rules to buy / sell may cause you to fail
  11. Expectation of double confirmation using multiple buy/sell indicators or any correlating indicators such as TV channels, Global markets, News events may make you to lose
  12. Lack of knowledge about back test the trading system, that states you about the trading system nature may also lead you to lose. You must learn the basics of trading, before you attempt to use the indicators
  13. Losing faith soon experiencing continuous losses in the trading system is another reason to fail
  14. Trading buy / sell signal at the wrong timeframe
  15. Avoiding to trade all signals or choosing only a few, which you find it to be profitable with timely prediction
  16. If you are a casual trading, just trying to trade during your lunch time or free time, then you lack knowledge about the trading signals
  17. Never become lazy to read and understand the rules of Buy / Sell
  18. Using the same old trading strategy used more than 2 or 3 decades may result loss

Besides these elements causing failure to your Buy/Sell signal indicators, there are also many other factors to consider. However, regardless of these factors, it is always recommendable for the traders to be aware of the market movements and learn the basics, while keeping themselves updated with the current market changes is important to succeed in trading.

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