Learn Forex Trading/Learn to trade


Learn to trade

So if you are a beginner who wants to learn Forex Trading or even an experienced trader who is not making money in forex then take a step backwards and initially learn to trade  using the simple techniques that traders have been using for nearly 100 years to take profits in the markets. New traders who are learning to trade forex often make the classic mistake of applying multiple indicators to a price chart thinking that this will give them multiple confirmations and lend additional weight to the signals. In other words if you have five indicators on a chart  and they all indicate a buy  then it is far more likely to be a successful trade than if you have two indicators on the chart indicating a buy. This really is not the case and can be proved by computer testing.  If you want to learn to trade successfully step one is almost always to remove some or even all of the indicators from your charts. For those that want to learn forex trading in particular this is even more the case because indicators are big business for Forex vendors and are heavily pushed to those that want to learn fo trade forex. Speaking as a trader who has earned a good living from trading for at least 15 years and spent far more time than is healthy computer testing techniques I can tell you absolutely categorically that indicators are most certainly not the complete solution. 
Many indicators overlap each other and are basically doing the same thing whether this is monitoring overbought oversold levels of the tendency of the market to be in trending mode or choppy mode etc. so you are just duplicating similar signals rather than getting added confirmation. The most likely outcome you will encounter if you apply five indicators to a price chart is that three will say buy and two will tell you to sell and in the end you will be even more confused than at you just been looking at the price chart free of all indicators. It is worth noting that if any single indicator was indeed the key to everlasting wealth there would not be the need for any other indicators. But when you look at your trading platform you will see you are  presented with an almost  never-ending list of indicators - this is telling you something very important - it is telling you indicators are very far from being the complete solution.
Location: City of London, London, UK

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