Learn Forex By Avoiding Mistakes Other Make
You have to make a decision. If you want to learn forex, you are going to have choose how you want to analyze the markets. Your choices are between technical analysis and fundamental analysis.
You can find some traders who are equally strong in both categories but in actuality, most tend to favor one form of analysis over the other.
However, there are still plenty of forex traders who decide not to choose either of the methods. This sounds completely irrational but most would rather trade from the gut than really study how to trade market properly, so you can enjoy long term success in it.
You may laugh, but there are many traders who dont really grasp just some of the basic fundamentals that come with news events. To give you an example, there are many traders who couldnt even tell you the significance of NFP numbers or unemployment numbers. Its sad but true.
Many traders arent even sure whether an increase or decrease in interest rates will make the price of their currency rise or fall.
What makes this even worse is the fact that many traders never really learn about the trading the forex market from a technical perspective. To some of these traders, the entire idea of using technical analysis is to put every single indicator on your chart, and somehow hope that your indicators are pointing you in the right direction.
The reality is that indicators don't provide anything of value to a technical analyst. Can you think of why that is? It's really simple. It's because all of them are completely 100% lagging. The truth is that an indicator is really only good for telling you something that has already happened, not what will happen, which is what you need to know.
If you are really serious about learning to use technical analysis, then I strongly encourage you completely get rid of your indicators start learning about price action. - 23208
You can find some traders who are equally strong in both categories but in actuality, most tend to favor one form of analysis over the other.
However, there are still plenty of forex traders who decide not to choose either of the methods. This sounds completely irrational but most would rather trade from the gut than really study how to trade market properly, so you can enjoy long term success in it.
You may laugh, but there are many traders who dont really grasp just some of the basic fundamentals that come with news events. To give you an example, there are many traders who couldnt even tell you the significance of NFP numbers or unemployment numbers. Its sad but true.
Many traders arent even sure whether an increase or decrease in interest rates will make the price of their currency rise or fall.
What makes this even worse is the fact that many traders never really learn about the trading the forex market from a technical perspective. To some of these traders, the entire idea of using technical analysis is to put every single indicator on your chart, and somehow hope that your indicators are pointing you in the right direction.
The reality is that indicators don't provide anything of value to a technical analyst. Can you think of why that is? It's really simple. It's because all of them are completely 100% lagging. The truth is that an indicator is really only good for telling you something that has already happened, not what will happen, which is what you need to know.
If you are really serious about learning to use technical analysis, then I strongly encourage you completely get rid of your indicators start learning about price action. - 23208
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To learn about forex, make sure to check out this website on currency trading education.
posted by X - Men @ 2:56 AM
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