The novice uses indicators to trade.
The professional uses indicators to problem solve.
If you can't problem solve then you can't trade.
Here is a very basic playbook.
If I marked every action it would fill the whole screen in a cloud of text: Here is the simple truth of trading breakouts:
Extremes are the worst price to enter the market (they are called 'extreme prices'...think about that).
If the high extreme is bad for longs and the low extreme is bad for shorts then the middle of the range must
be the best price for both; but price doesn't usually reverse that far when trending so the best we can hope for
is around 1/4 to 1/3 penetration of the range after a breakout. This is what you do to become a better trader:
1. use a real broker with a professional platform (one that offers advanced order types)
2. learn the order types.
3. buy a dry erase board and create 'plays' for your entry/exit playbook using your new order type knowledge.
One of the keys to trading is simply KNOWING all of your options.
If an option is the best and you don't know that it is there then you cannot make the best decision.
4. do REAL paper trading: once per day:
print out the daily or 8 hour chart
print out the 30 or a 10 minute chart and pencil in a days worth of PA.
take those charts to the kitchen table and think about them...use your dry erase board and problem solve.
Mark your charts, make notes, put them in a file folder, KEEP THEM!
Trading a demo account is not paper trading, that only gets you used to placing orders.
Your brain gets so filled with incoming information that you remain dumb for years...
how do I know that they remain dumb? they post charts with perfect up/down trends, marked with EMA's (as if they can't already see what price is doing!), and they ask me how to trade the chart.
If they can't figure out how to trade a chart that is moving straight up then I can't help them...they should bag groceries or shovel s**t...something more on their mental level.
5. find truths:
a) price rises on bodies but cannot fall on wicks.
b) price moves hundreds of pips from one long term extreme or the other.
c) extremes are the worst price to enter a trade
write them down and keep the book under lock and key; treat each truth as sacred.
6. ask questions, hear what people have to say, but look to your heart for the answer.