I’m fully aware of that. That is why some professional traders prefer day trading over swing trading.
I use both. Robinhood for my individual stock trades, and M1 for my passive trading, where I mostly have a fixed monthly deposits to invest in index funds.
Neither of them charge a commission for trades, correct? How about their indicators, any preference between the two?
Neither charges anything, yes. They make money off of your “untraded” funds sitting around.
Robinhood only has the candle stick indicator, but I think they have more data / indicators with their “gold” membership, which I dont have.
M1 doesnt have anything, just the 1 /5 / 10 years average, hence I use it as a passive investing vehicle.
Institutional traders, the ones who move the FX market, don’t use indicators. They use 100 and 200 sma, support and resistance levels, daily pivots, fibo retracements, and trend lines. All these tools give specific price levels where orders will likely concentrate and because their positions are defined they are non ambiguous. If price reaches a support level it will usually stall and than either break it or bounce off of it. That price level is clearly defined and you will know where the market is headed depending how it reacts to the price level. Buy if it bounces or go short if it’s breached. Should you buy and the price suddenly reverses and breaches the level the long position is invalidated and you need to get out. All possible scenarios are clearly defined.
Compare this to indicators. Overwhelming number of indicators are non-ambiguous. They don’t tell you at what price level the indicator is wrong and you need to get out. An example would be the stochastic indicator. It’s a very popular indicator because it tends to work most of the time. Sell when stoch lines are in overbought area and are crossing over each other and vice versa for buy. It tends to work most of the time because markets are cyclical since at some point there will be profit taking. It all works. Market shoots up and reaches overbought area. Price stalls and even start to retrace. The stoch crossover occurs and you go short and price stalls and then start going higher, but slowly. Is your position wrong? Price moving against you doesn’t necessarily mean your wrong. In fact price rarely reverses on a dime and seeing price move slightly against you until finally making a proper move is the norm. In this case price is still rising, at what point are you wrong and need to get out? Before you know it you are short in an upward trending market and trend tend to accelerate which can last for days to years.
I use this example for a reason anytime there is a trend break out go here , sign-up, and look at retail positioning. You can go here too for another perspective. You’ll notice that the majority are ALWAYS positioned against the trend. Retail traders are notorious for doing this and indicators with overbought and oversold signals are the reason why. This anomaly is why the failure rate for retail traders hovers around 70%.
Pull up a chart and use the tools I mentioned institutional traders use. Watch how price reacts to all those tools. Get into the rhythm of how the market moves. Once you get used to those tools and get on the same page as the market you will find that indicators are at best providing you duplicate information that is already obvious on the chart or at worst telling you to open a position going against the trend.