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.
This may sound funny to you, but there are a lot of traders who have no understanding of some of basic fundamentals, like news events. For instance, many traders have absolutely no idea as to the importance of Non Farm Payroll Numbers or Foreclosure numbers. It's rather unfortunate.
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.
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. - 23204
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.
This may sound funny to you, but there are a lot of traders who have no understanding of some of basic fundamentals, like news events. For instance, many traders have absolutely no idea as to the importance of Non Farm Payroll Numbers or Foreclosure numbers. It's rather unfortunate.
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.
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. - 23204
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To learn how to trade forex, make sure to check out this website on becoming a forex scalper.
posted by X - Men @ 2:55 AM
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