đ I Stopped Losing Money After Using These Simple Trading Rules!
Like many beginners, I once relied on gut feelings instead of a clear trading strategyâand it cost me money. But everything changed when I learned how to read market indicators.
đ How I Stopped Losing Money & Started Winning Trades
Instead of chasing random price movements, I started using four powerful indicators to make informed decisions:
1ď¸âŁ RSI (Relative Strength Index) â Timing the Market
đ What it does: Detects if an asset is overbought (time to sell) or oversold (time to buy).
đ My Strategy:
RSI above 70 â Overbought = Possible price drop
RSI below 30 â Oversold = Potential buying opportunity
2ď¸âŁ MACD (Moving Average Convergence Divergence) â Trend Direction
đ What it does: Confirms whether a trend is gaining strength or losing momentum.
đ My Strategy:
Bullish crossover (MACD line above the signal line) = Buy Signal đ
Bearish crossover (MACD line below the signal line) = Sell Signal đ
3ď¸âŁ Bollinger Bands â Spotting Breakouts
đ What it does: Identifies when a market is too quiet or about to explode in either direction.
đ My Strategy:
Price touching the upper band â Overbought = Watch for reversals
Price touching the lower band â Oversold = Watch for potential entry
4ď¸âŁ ATR (Average True Range) â Understanding Market Volatility
đ What it does: Measures how much an asset moves, helping me set realistic stop-loss and take-profit levels.
đ My Strategy:
Higher ATR â Expect bigger price swings (use wider stop-loss)
Lower ATR â Expect stable movement (use tighter stop-loss)
đ My Winning Trading Plan (Step-by-Step)
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Check RSI â Is it overbought/oversold?
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Look at MACD â Is there a bullish or bearish crossover?
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Analyze Bollinger Bands â Is a breakout coming?
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Use ATR â Adjust risk based on market volatility.
With this strategy, I never trade blindly anymore. No FOMO, no emotional decisionsâjust smart, calculated trades.