The ABCs of Learning Forex
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.
I’m sure you can find a few traders who are equally great in both categories but for the most part, traders usually stick to only one form of analysis as their MO.
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.
What makes this even worse is the fact that many traders never really learn about the trading the forex market from a technical perspective. To some of these traders, the entire idea of using technical analysis is to put every single indicator on your chart, and somehow hope that your indicators are pointing you in the right direction.
The reality is that indicators don’t provide anything of value to a technical analyst. Can you think of why that is? It’s really simple. It’s because all of them are completely 100% lagging. The truth is that an indicator is really only good for telling you something that has already happened, not what will happen, which is what you need to know.
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.