The Best Forex Systems Are Not Mechanical

 

No matter where you turn, there is a trader wondering what the best forex systems are.  I for one am not a big of the word system.  The problem I have with the word is that it infers a mechanical trading style.

When I think of a "system", I envision a chart which is flooded with every indicator that you can think of.  You know... the usuals (moving averages, MACD, RSI, Stochastics, etc..)

These systems always consist of generic rules such as buy when the stochastics are showing oversold and the MACD is showing positive price divergence. Sell when stocks are overbought and the MACD is showing negative price divergence.

I know people enjoy using these tools, but quite frankly what do they have to do with trading? You are not trading the market.  You are trading the indicators.

It's kind of like saying "let's not pay attention to what the market is doing.  Let's pay attention to what my indicators are doing." You could see how this could be a deterrent to your success.

You have to understand that the forex market (or any trading market) is not mechanical.  The trader can't just shut off his brain and follow the indicators blindly.  There has to be some analysis being done by the trader.

If the markets were this mechanical, you would see a much higher success rate.  Right now, only 5% of forex traders make money. If the markets could be traded mechanically with a forex system, then more people would be seeing success. Because after all, the system is the same, so it's not dependent on the trader.

My entire point is that you really should learn forex trading.  Learn the ins and outs and the nuances of the market.  This has to start with the analysis of price action and price movement.

The moment you can get rid of your indicators is the day that you can call yourself a trader.  Start today by doing some naked trading. Remove all of your indicators.                                          

 

 Forex-Trading-Education

 

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