The ABCs of Learning Forex
So you want to learn forex? Well, that means you have to make an important decision. You have to choose what kind of analysis you are going to use. You can either decide on technical analysis or 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.
However, there are still plenty of forex traders who decide not to choose either of the methods. This sounds completely irrational but most would rather trade from the gut than really study how to trade market properly, so you can enjoy long term success in it.
I know this may sound crazy to you, but there are a ton of traders who don't have the tiniest grasp of some basic fundamentals, such as news events. To give you an idea, many traders don't have a clue as to why the Non-Farm Payroll figures or housing foreclosures are so critical. It's a sad state of affairs.
Many traders arent even sure whether an increase or decrease in interest rates will make the price of their currency rise or fall.
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 want to truly understand all about technical analysis, then I recommend that you clean your charts of any indicators and begin to study up on price action. - 23162
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.
However, there are still plenty of forex traders who decide not to choose either of the methods. This sounds completely irrational but most would rather trade from the gut than really study how to trade market properly, so you can enjoy long term success in it.
I know this may sound crazy to you, but there are a ton of traders who don't have the tiniest grasp of some basic fundamentals, such as news events. To give you an idea, many traders don't have a clue as to why the Non-Farm Payroll figures or housing foreclosures are so critical. It's a sad state of affairs.
Many traders arent even sure whether an increase or decrease in interest rates will make the price of their currency rise or fall.
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 want to truly understand all about technical analysis, then I recommend that you clean your charts of any indicators and begin to study up on price action. - 23162
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To learn forex trading, make sure to check out this website on trading with the trend.
posted by X - Men @ 12:55 AM
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