Forex Trading Training - The RIGHT Way To Trade

There are many places where a person can get forex trading training. But as far as getting the right kind of training....well, that's a different story altogether.

It seems like more than ever, people have these "systems" that they are looking for.

price actionWhen I say "system" I mean something mechanical that you can just follow.  It's usually something like if A & B happen then you do C.

While, inherently there is nothing wrong with this, the way most people teach this method leaves little to desire.

The problem starts off with the fact that most people use indicators.....actually to be precise they use many indicators.

So they'll throw a bunch of indicators on a chart like moving averages, stochastics, MACD, etc... and come up with a system.

It will be something like:

Buy when:

1) Moving averages cross each other in an upward movement

2) Stochastics show oversold as it is below 20, and the two lines are about to cross upwardly.

3) MACD shows price divergence.

Vice versa for a sell.

Now, what is wrong with this strategy???

Well, several things.

For starters, this is nothing new.  You could find this kind of information on any forex forum on the internet.  What part of this is currency trading strategy.

Another problem is the age old issue of indicators being lagging in nature. All the information they are giving you is just telling you what has already happened.  Putting a few indicators together isn't going to change that fact.

Thirdly, what are you possibly learning from this? Notice in all the instructions you don't even have to pay attention to the price of the currency pair. That is completely insane.

Theoretically, you don't even have to know where the price is when you buy or sell because all you are focused on are your indicators.

I'm guessing most people that trade in this manner don't have much insight as to what is going in the market, both from a technical side and a fundamental side.

I don't mean to come down hard on this kind of trading method.  Truth be told, when I first started trading, I was an indicator junkie. You name it.....I used it.

Then it hit me like a ton of bricks.  I didn't even know what I was looking at.  I was basically like a robot waiting for my instructions from my master (the indicators).

If I was going to have success trading forex, I would have to learn all about price action.  That starts by getting rid of the indicators. After I did that it was all smooth sailing.

So if you have tried using every indicator on your charting platform and you are still left puzzled, its about time you try to trade naked (i.e. no indicators).  i think you'll find it very liberating (and profitable). 


 

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