Trade in the absence of indicators - is better than the stochastic

I think the concept of trade with the lack of performance sounds very intimidating to many traders. I can understand why so many traders think. But let me explain one thing:

Indicators of nowhere, but the formulas.

No wonder that trade is a dynamic market, with static formulas. Do you really think that these formulas with any knowledge of the market?

Do not get me wrong. I understand why people with trade indicators. It's much less pressure on the supplier, unless the fact that the figures say that exchange.

Stochastic give you the real story

Let's see perhaps the most common indicator that traders use: stochastic. If you do not know, is an indication that supposedly will let you know when the market is either overbought or oversold.

There are many ways to trade the stochastic, but the most common way to sell if the price is overbought (above 80) and buy when the price is oversold (below 20).

Does this make sense?

Think logically. What is really overbought or oversold? And even better, since it is actually a measure of this indicator? Do you think that the most successful operators in the world is really what they say stochastic?

There is a problem with the identification of an overbought or oversold. This is something you do not know when it is overbought or oversold, while the price is around. Then it's too late. This problem inherent in the random, or any other indicator in this sense: that is in arrears.

But if the indicators of a new control, as stochastic processes, it looks good. It's a different story after the trade, to live.