I am a small-time trader from Chennai who has seen a fair share of the ups and downs in the share market. For years, I’ve relied on the same trusty technical indicators – RSI, MACD, moving averages – that helped me understand the market. But as the days pass, I’m finding out that these old methods aren’t keeping up with the modern, AI-driven trading systems.
I used to think technical indicators were enough, but AI’s speed and precision are bringing about a huge change. I thought it might be helpful to share my experience and struggles as I try to keep up with these new advancements in the stock market.
My Go-To Technical Indicators and Why They Worked (Until Now)
Like most of us small traders, I began my trading journey with simple, well-known indicators:
1. RSI (Relative Strength Index) – I used RSI to tell if a stock was overbought or oversold. When RSI would go above 70, I’d think, “Ipdi pona it’ll fall soon, time to sell,” and when it dipped below 30, I’d think, “Adhiga oli amaidhi kaanaadhe, time to buy!”
2. Moving Averages – This was like my backbone in trading. Whether it’s the 50-day or 200-day, these moving averages smooth out the price data and show the general direction. If the stock goes above the moving average, I think, “Innum ethadhu kadikkum,” and if it’s below, I worry a bit more.
3. MACD (Moving Average Convergence Divergence) – For me, MACD was like a guiding light in times of confusion. I’d watch for a crossover; if the MACD line crossed above the signal line, it was a “buy,” and vice versa for a “sell.” Nallathoru confidence dhan irukum idhu vachu!
These indicators felt simple, logical, and familiar. But as the market changed, I started noticing these tools weren’t as reliable as they used to be.
Why Technical Indicators Are Falling Behind
Lately, I’ve been noticing some problems. The market is moving faster than before, and my indicators often react too late. Let me explain why:
1. Lagging Indicators – Traditional indicators, like moving averages, are based on past prices. So, when the market moves quickly, these indicators lag behind. Even if the trend shifts, my indicators sometimes show it only after a delay. “Adhukulla avlo trade miss aagudhu!” By the time they confirm, the market has already reacted.
2. Complex Market Behavior – With big players and high-frequency trading algorithms, the market isn’t just human-driven anymore. These fast trades make sudden movements, and our indicators can’t keep up. This is something I never saw coming. They trade in milliseconds! “Ellathaiyum kandupidi mudiyudhu pola irukku.”
3. Algorithmic Manipulation – These big hedge funds and financial institutions have trading algorithms that can detect patterns we use. They see our indicators and adjust their trades to profit off of us. It feels like they know my every move! When I act on an indicator signal, it’s like they’ve already anticipated it. “Nama ella planum ready panni irundha, avanga algorithms ellam aatichu vittu podudhu.”
AI-Powered Trading: The New Force in the Market
This is where AI comes in. I was hesitant at first, but I realized AI has some real power when it comes to analyzing data quickly and accurately. I thought AI was just a hype, but when I saw it, I realized it might just be the way forward.
1. Handling Massive Data – AI doesn’t just analyze the stock prices; it looks at global events, news, and even tweets! Imagine how many factors it’s considering – something beyond RSI or MACD. “Ennamo nammala kaaga dhan AI irukkaranu thonudhu!”
2. Real-Time Adaptability – Unlike traditional indicators, AI systems adapt instantly. They change in real time based on the latest information. For example, AI can pick up a trend shift before RSI or MACD even react. It’s like AI has a sixth sense. By the time I act, AI models already know where the market’s headed.
3. Customized Insights – One thing I love is how AI can be tailored to suit each trader’s style. If I want short-term alerts or longer trends, I can get it customized. I realized it can match my trading style in ways traditional indicators cannot. This wasn’t possible with the old indicators. “Namaku thevaiyaana alert kuduthalum it will adjust accordingly.”
My Challenges with Switching to AI
Now, adopting AI isn’t a walk in the park for someone like me. I’ll be honest, there’s a lot of learning involved. From the start, it felt like “oru periya murukku,” a complicated twist that I wasn’t sure I could handle. Here are the main issues I faced:
1. Steep Learning Curve – I am comfortable with my traditional indicators. But AI and machine learning involve programming, data science, and other complex stuff. For someone self-taught, it’s quite overwhelming. But I’m taking it step-by-step.
2. Initial Cost – Setting up AI is costly. It requires not just software but also powerful hardware to run algorithms. Big hedge funds may afford it, but for a solo trader like me, investing in this technology is hard.
3. Trust Factor – I’ll admit, technical indicators are straightforward. I know how they work. But AI models are complex, sometimes like a “black box.” It’s hard to trust something I can’t fully understand. I’d rather know why something’s happening than simply believe it.
My Next Steps in the AI World
At first, I thought, “Indha AI-la trading panrathuku naalum konjam thookkam edukka mudiyuma?” (Can I even get enough sleep with AI trading?) But I see now that it’s time to adapt. I’m learning a bit about data science, taking beginner courses, and exploring AI tools that don’t need much coding. I haven’t given up on RSI and MACD, but I’m now trying to combine AI’s analysis with my indicators to balance both.
I don’t know if I’ll ever master AI completely, but I’m taking small steps. My advice to other traders out there is simple: “Technology eduthukkara ulagathula, namma pathattukku bayandhu niruthikkudaadhu.” (In a world driven by technology, let’s not stop because of fear.)
So, this is my journey so far – an ordinary trader trying to understand an extraordinary technology. AI is challenging, but who knows, it may be the key to unlocking a whole new level of success.
Thanks for reading my story. I hope it helps if you’re facing the same struggle. “Sandhoshama irunga, steadya irunga, nalla analysis panni trade pannunga!”