Talking to the aspirant trader – live your dream – sidestep the nightmare!
Listen to their cries of distress, “Why does the market always go in the opposite management to my trade?”
Time to listen to those who know – seek facts and avoid hype.
Forex Trading is a certain home affair option to remedy some of the financial hardships being experienced by many families today. Why then do so few Forex Traders make the grade? Forex Trading certainly is a high risk affair venture, but so is every venture you enter wearing a blindfold. I’ll argue that point in more detail as we search out the certainty. As a home affair opportunity it is unequalled. The Forex market is enormous. A few trillion dollars change hands every day. Many have been there before us – the question now is to how do we sort the chaff from the wheat amongst these self proclaimed Gurus?
Therefore no need to re invent the wheel – do it right and taste the success of culture from the experience of others – (be careful whose”experience” you take on board!) Some of it is not what it seems.
This condition is not about the Forex market, but rather about the aspirant foreign Exchange trader or the trader who thinks that taking losses is the accepted norm. We shall rectify some of the Forex Trading myths that by many are taken as Gospel certainty, no matter how controversial it may be. But than again how shall you argue with my point of view if you are not making money and working from the comfort of your home. But, it is like all else in life if you do not know that you do not know you will not look for an resolution.
For many traders it is like walking across a busy highway to get home wearing a blindfold, your chances of reaching home without first sad on the casualty part of the nearest hospital are remote. The Forex industry has the same blindfold syndrome. Unfortunately when they do not make money many traders rush off to buy some robot with a promise of second success. Let’s cut to the chase.
Technical analysis are all tools that tell you what the price has just done and not what the price is going to do To see what the price has just done I do not need a technical indicator of any kind. I can see that with my eyes.
To make these seem valuable tools the theory that history repeats itself is held up as its underpinning foundation for success. Bollocks!!! No one can foretell the future. At best a technical analysis tool like perhaps a Stochastic or the trend indicator ADX is a confirmatory indicator; none of these indicators are tools by which you can trade Forex to the exclusion of it understanding its one and only foundation indicators.
So than, what does the Forex Trader use to get an thought of the pressing price management. There in lies the resolution, the price itself. The only indicators value using are the price and its management or lack thereof. Those in isolation are also not sufficient to choose on a trade set up. Once you have customary that there is going to be a price movement coming out of a consolidation, the question of which way the market is going to go remains unanswered.
For this you may use specialised chart patterns, which to the untrained eye are hard to recognise. These are often bestow, but not often seen or recognised by the trader. Once you have recognised these than only, yes, only then will you use a technical indicator or two which are confirmatory to your price and chart pattern recognition ability, and all this at a predetermined level on your chart. I’ll even make bold to say that responsibility this from knowledge rather than trial and error will reduce the Draw Down of all your trades.
Author Bio: Hans is a South African Trader with 17+ being experience in the markets and 5+ being teaching others to trade as a tutor. His systems, skill and knowledge allow him to trade with very low draw down and very high accuracy. Feel free to question Hans a question below…
More: