Remember, MetaStock's primary function is to identify potential trades and then allow you to analyse them. MetaStock Professional will not trade for you. It will not decide to exit a trade on your behalf when you are facing a loss; it will not determine when to pyramid into a trade. MetaStock can only identify when certain technical conditions are present, and then alert you to the fact. It is still up to you to define what those technical conditions are and then tell MetaStock to watch for them. Once a security is identified, the decision about whether or not to act on that information is yours. Sadly, many people blame their tools, or the advice of others, for a bad trade; ultimately, the decision to trade is yours. MetaStock and MetaStock data is a tool that can only be used to identify trades, nothing more.

The Perfect Indicator

The perfect indicator is a trap. Unfortunately, many users of MetaStock and TradeSim have fallen into the perfect indicator trap. Convinced of MetaStock's power, these users undertake a determined search to find the perfect indicator(s) that will lead them to trading success. It is, for them, a silver bullet that will slay the market. Somehow, the indicator is supposed to correctly predict a security's price movement on every occasion. Its perfect entry is supposed to produce financial results that many people only dream of. However, most successful traders have come to realise that no such perfect indicator exists. It doesn't today, never did, and never will.

There is no Holy Grail of trading. There is no set of conditions that will let you know without fail how to make a profitable trade every time. So, now that you're aware of MetaStock's power, don't get sidetracked by the idea that a Holy Grail may exist. The reality is that MetaStock download, or any charting software for that matter, is simply a tool to be used.

When MetaStock is used to its full capacity, it can be an amazingly effective tool. But remember, that's all it is a tool. Our message here, therefore, is that you should put MetaStock format into perspective with all of the other determinants of your trading success. Regardless of how effective a tool it may be for you, it is just one part of a successful trading plan.

The Importance Of Entry

Your decision to buy something is one of the first decisions you make in trading; it is also the least important. Entry is a small part of a total trading plan. The reason many traders spend most of their time determining their entry signal and making the decision to buy is that they believe this increases their chances of making a profitable trade. However, there are far more important issues in determining your profitability. Understanding your own psychology and understanding money management models are just two examples of issues that you need to consider.

Our suggestion regarding entries is to follow a simple time-tested rule: buy securities trending up, and sell those going down. When used for entry, technical analysis is simply a method to increase your chances of being right about the trade. And always remember no MetaStock addon is ever 100% correct.

Would you like to learn more about MetaStock? Visit www.meta-formula.com