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
It seems like more than
ever, people have these "systems" that they are looking for.
When 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
The problem starts off
with the fact that most people use indicators.....actually to be precise they use
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
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
Vice versa for a
Now, what is wrong
with this strategy???
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
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
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).