For people that are struggling and trying to lean how to trade forex, they go on the lookout for the best forex strategies. However, a key problem with this is that most of the strategies that are available in the marketplace are horrendous.
Most of them rely on a system of multiple indicators to tell the trader when to buy or sell.
The thing is, these are lagging indicators. They're really useful if you are interested in knowing what has already happened. But if you're interested in where the price is going, these indicators aren't going to do you much good.
If you think about it, if it was so easy using these indicators, why is it that so many people fail miserably at trading forex? As a matter of fact 95% of traders lose money trading forex.
You're probably thinking why is that? If these indicators are so easy to trade with and the trading rules are so mechanical, why is it so hard?
The big setback using these indicators is that they don't provide any kind of understanding of the market. It's going to be difficult trading forex if all you have to go by is a bunch of moving averages crossing one another. Trading like that is recipe for disaster.
If you want to get a full understanding of why market prices move the way they do, then learn all about price action. Your first step is to get rid of all the indicators on your charts.
This is the only unique way to have a grasp of the ins an outs of trading forex. Once you're able to do this you can see that forex can be forecasted. You'll be able to spot countless different price patterns which are repeated over and over. You just have keep your eyes peeled.
Just spend a whole day looking at a naked chart. Don't worry if you don't see any patterns developing. In time, they'll be so easy to spot.
Most of them rely on a system of multiple indicators to tell the trader when to buy or sell.
The thing is, these are lagging indicators. They're really useful if you are interested in knowing what has already happened. But if you're interested in where the price is going, these indicators aren't going to do you much good.
If you think about it, if it was so easy using these indicators, why is it that so many people fail miserably at trading forex? As a matter of fact 95% of traders lose money trading forex.
You're probably thinking why is that? If these indicators are so easy to trade with and the trading rules are so mechanical, why is it so hard?
The big setback using these indicators is that they don't provide any kind of understanding of the market. It's going to be difficult trading forex if all you have to go by is a bunch of moving averages crossing one another. Trading like that is recipe for disaster.
If you want to get a full understanding of why market prices move the way they do, then learn all about price action. Your first step is to get rid of all the indicators on your charts.
This is the only unique way to have a grasp of the ins an outs of trading forex. Once you're able to do this you can see that forex can be forecasted. You'll be able to spot countless different price patterns which are repeated over and over. You just have keep your eyes peeled.
Just spend a whole day looking at a naked chart. Don't worry if you don't see any patterns developing. In time, they'll be so easy to spot.
About the Author:
If you'd like to learn to trade forex successfully, you need to put aside all the so called best forex strategies which are on the market.
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