Learning Forex The Right Way
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.
You can find some traders who are equally strong in both categories but in actuality, most tend to favor one form of analysis over the other.
The sad thing is that there are also a bunch of traders out there who have never taken the time to really learn either of the methods. I know this sounds rather irrational, but many traders prefer to use their own instincts instead of learning how to properly analyze the markets.
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.
You'll find that many traders still don't quite understand whether an increase or decrease in interest rates will make their currency rise or fall in value.
This really wouldnt be that bad if traders really took the time to learn about analyzing the market from a technical perspective. But, as you may have guessed, most dont do that either. To many traders, technical analysis means shoving a bunch of indicators on your charts and hoping that these indicators are giving them the correct information they need.
The honest truth is that the vast majority of indicators will not ever provide any kind of proper technical analysis. The big reason for this is because they are inherently lagging. If you want to know what has already happened, then they are pretty good. But if you want to know what will happen, it doesnt provide much help.
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. - 23314
You can find some traders who are equally strong in both categories but in actuality, most tend to favor one form of analysis over the other.
The sad thing is that there are also a bunch of traders out there who have never taken the time to really learn either of the methods. I know this sounds rather irrational, but many traders prefer to use their own instincts instead of learning how to properly analyze the markets.
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.
You'll find that many traders still don't quite understand whether an increase or decrease in interest rates will make their currency rise or fall in value.
This really wouldnt be that bad if traders really took the time to learn about analyzing the market from a technical perspective. But, as you may have guessed, most dont do that either. To many traders, technical analysis means shoving a bunch of indicators on your charts and hoping that these indicators are giving them the correct information they need.
The honest truth is that the vast majority of indicators will not ever provide any kind of proper technical analysis. The big reason for this is because they are inherently lagging. If you want to know what has already happened, then they are pretty good. But if you want to know what will happen, it doesnt provide much help.
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. - 23314
About the Author:
To learn forex trading, make sure to check out this website on trading with the trend.
posted by Mr. Forex at
4:32 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home