The ABCs of Learning Forex
If you want to learn forex the right way, you are going to have a make a decision as to how you want to properly analyze the market. You need to choose between technical analysis and fundamental analysis.
I'm sure you can find a few traders who are equally great in both categories but for the most part, traders usually stick to only one form of analysis as their MO.
But unfortunately, there are plenty of traders who have made a conscious decision not to learn either method. Trust me, I know this sounds crazy, but many traders would rather trade from the heart, instead of taking the time to learn how to properly analyze the market, so you can trade it successfully.
You may laugh, but there are many traders who dont really grasp just some of the basic fundamentals that come with news events. To give you an example, there are many traders who couldnt even tell you the significance of NFP numbers or unemployment numbers. Its sad but true.
There are a ton of traders who still don't know if a rise or fall in interest rates is good or bad for the value of their currency.
What makes this even worse is the fact that many traders never really learn about the trading the forex market from a technical perspective. To some of these traders, the entire idea of using technical analysis is to put every single indicator on your chart, and somehow hope that your indicators are pointing you in the right direction.
The reality is that indicators don't provide anything of value to a technical analyst. Can you think of why that is? It's really simple. It's because all of them are completely 100% lagging. The truth is that an indicator is really only good for telling you something that has already happened, not what will happen, which is what you need to know.
If you are truly serious in learning more about technical analysis, then do yourself a favor and get rid of your indicators, and educate yourself on price action. - 23199
I'm sure you can find a few traders who are equally great in both categories but for the most part, traders usually stick to only one form of analysis as their MO.
But unfortunately, there are plenty of traders who have made a conscious decision not to learn either method. Trust me, I know this sounds crazy, but many traders would rather trade from the heart, instead of taking the time to learn how to properly analyze the market, so you can trade it successfully.
You may laugh, but there are many traders who dont really grasp just some of the basic fundamentals that come with news events. To give you an example, there are many traders who couldnt even tell you the significance of NFP numbers or unemployment numbers. Its sad but true.
There are a ton of traders who still don't know if a rise or fall in interest rates is good or bad for the value of their currency.
What makes this even worse is the fact that many traders never really learn about the trading the forex market from a technical perspective. To some of these traders, the entire idea of using technical analysis is to put every single indicator on your chart, and somehow hope that your indicators are pointing you in the right direction.
The reality is that indicators don't provide anything of value to a technical analyst. Can you think of why that is? It's really simple. It's because all of them are completely 100% lagging. The truth is that an indicator is really only good for telling you something that has already happened, not what will happen, which is what you need to know.
If you are truly serious in learning more about technical analysis, then do yourself a favor and get rid of your indicators, and educate yourself on price action. - 23199
posted by X - Men @ 12:08 AM
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