Each trader needs several indicators:

• You will not find a system that gives 100 percent correct results, nor an analyst who could predict trends with 100 percent accuracy, just as you will not find a publisher of news who will tell you 100 percent of the truth.

• If a trader uses only one indicator (advisor), he is usually blinded by this indicator (advisor). This results in "tunnel vision" and the trader will never see beyond what that single indicator predicts.

• If an additional indicator can reduce your trading risk and cut your losses by 5 percent then it is most definitely work the price that you would pay for it.

Many traders use the same indicators that the professionals use:

• The best results arise from indicators that are based on independent forms of analysis. For example, news, market sentiment, and volume are three totally different indicators.

• It is difficult for one trader to use several totally different techniques to analyze the market. This is why many of them use the results from several different analysts.

• An indicator that is based on the results of professional analysis is free of any personal emotions on may attribute to any trading decision.

Each indicator takes part in making a trading decision:

• Every trading indicator has a certain level of accuracy. Sometimes in order to define this level, a trader must watch this indicator for several months.

• Each indicator that you use should be assigned coefficient that is based on the strength of that particular indicator. For example, if our Market Outlook states that there is a good chance the index will move lower in the mid-term, you should assign something like a -7 to that indicator. But if the news indicator is contrary and states with a great deal of certainty that the market will move higher, then you assign a +7 to that indicator.
   
• Which indicator should you follow? Well, volume tends to be much more truthful than the news, so you may want to weight these indicators and give the volume indicator 0.6 and the news indicator a 0.4 weighting. As a result of weighting, the volume indicator (0.6*-7) is greater than the news indicator (0.4*+7), but the difference between the two is not as large. In this scenario, you may want to cautiously play down.

• Analyze the results of your indicators in order to determine what the current market stage is, then make your trading decision accordingly. We caution our traders that it is very risky to make any trades that go against the market trend.

A few more tips:

• Try to become an emotionally cold trader, as you do not want to let your emotions lead you in the wrong direction.
   
• Be aware of any free trading advice that you find on the internet; deconstruct where the advice comes from and who may benefit from giving you trading advice.