Is a trader better off with indicators, methods or systems than using intuition?
A. To a large extent this depends on the trader. While most traders will do better in the long run if they follow a specific methodology in the form of a system, there are those traders who appear to have a well developed artistic sense of trading. Their intuition and internalized sense of the markets serves them well. The bottom line is, of course, whether they can use their talents to generate consistent profits. If they can, then they ought to continue what they’re doing. On the other hand, many traders who fail to use a mechanical system will make many mistakes that will result in an overall loss of money. In such cases a system is much better than a method or a signal. Q. How can I find a good system? A. Good systems tend to come from good indicators. Good indicators are not necessarily logical indicators. Many times what appears to make good sense and what is based on sound market logic fails to work in actual practice. Hence, do not consider the face validity of a method or syst
