Are you a leader or a laggard?
		


		As you may already know there are hundreds of indicators that have
		
		been developed over the last 50 years to help traders get an edge in
		
		the market. But you can class them into TWO GROUPS:
		
		1. LEADING INDICATORS
		
		2. LAGGING INDICATORS
		
		Leading indicators consist of PRICE, W%R, FAST MOVING AVERAGES, usually
		
		3 to 5 in terms of timeframes. Leaders tend to get you into a trade fast
		
		which is good because your ahead of the pack. But the downside is that you
		
		encounter more false signals and could be stopped out early and repeatedly.
		
		Lagging indicators consist of MACD, SLOW MOVING AVERAGES, usually 50 to 200
		
		in terms of timeframes. (ie 200 mins or 200 day sma). Laggards are more trend
		
		oriented tools which react slower, so your trading with the pack or after the
		
		main pack of traders has placed their trades. This tends to cut out false
		
		signals but your profit is often reduced because your not in at the bottom
		
		and out at the top. Trying to catch the bottom and tops of price moves can be
		
		very dangerous and should be avoided no matter what timeframe or indicator you
		
		use.
		
		You should trade according to your personality because what eats away at a man's
		
		inside can be a real hazard to success. If your not the patient type then daytrading
		
		could be for you. But remember that good money is made in the bigger swings on a
		
		daily, weekly or monthly timeframe, so keep that in mind.
		
		MasterTrader eBook