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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.
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 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
forex trading
training.
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).
Check
out Trading In The
Buff to Learn How To Trade
Forex Successfully Just Using Price
Action.
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