Dear Annie, For each combination of trading style and trader personality there is at least one approach that will work well (i.e., there's no one way that's correct). I believe it's generally easier to start with a very simple approach and then try to understand why you might need additional information to gain an edge. Trying to observe and track a large number of indicators can be overwhelming and distract you from getting a feel for the behavior of price in the market. Just to get started with technical strategies, consider looking at Japanese candlestick analysis, moving averages to define support and resistance (not necessarily for crossovers), trendline analysis, and multiple time frames (for example, confirming a trade setup on 5-min, 15-min and 30-min charts). To test your strategies try a practice account at Oanda. This will help you to preserve your capital while you learn. However, in the end, success in trading has far more to do with discipline and money management than it does with your technical approach. Regards,
Hey Annie, Someone has told me about a simple technique called "forex trapping" is it a good technique or not? It's not called "trapping," it's called cornering, and yes, it is a viable and excellent way to make money in the forex. It is also one of the more advanced trade/position-structuring techniques, so, as a beginner you may or may not reach the level of proficiency to use it. Basically, it is structuring your trades so that, ultimately, moves either up or down will bring your trade/positions into profit where you snap them closed and pocket the money. While it is a good structure it also carries a higher risk level. There are better ways to make money trading forex with less risk than cornering currencies. Some feel George Soros, the legendary currency trader, once cornered the silver (GBP or Great British pound) market when he "broke the bank of England." It's nonsense. He was just lucky to be selling GBP at the time it slid down to hell. He took credit for making it happen by speculating against the pound, making a billion dollars when he closed his now world-famous trade. Think it over: If he could really corner the GBP, he would have done it over and over and over, becoming the richest man on earth, easily. He later went on to lose a billion dollars, a fact not as many realize. Read up on it. Also I see from a broker that if you want to become a good trader in forex, you must use and learn a lot of indicators, is it true ? (its make me very confused). This is NOT true. In fact, the more indicators you have the more your view of the forex market is blurred or blocked. Trading well is a bit complex but not rocket science. The simplier you make it the better you'll do. Indicators are a can of worms you may be better off not opening. The basis of indicators is structured in the theory that when this happens then that will happen. Similar to those who attempt emotional trading in the zone techniques, users of indicators think they will somehow see the future before it happens, transforming themselves into mini-forex Nostradamuses, becoming rich in the process. It's hokus pokus. Don't believe it. You'd do better learning how to react to market actions than trying to anticipate currencies' next moves. Just work hard, study and use common sense. Be a student of the market and you'll advance. Good luck, Exchanges
Excellent post exchange Keep it simple is the rule, I trade 3 currency pairs. Each one has a personality of it own. I have spent 20 years understanding Market action. People would be very surprised how the same thing happens over and over and over. The most important thing anyone can do is. Get out quickly when you are wrong. You can always get back in... This is NOT true. In fact, the more indicators you have the more your view of the forex market is blurred or blocked. Trading well is a bit complex but not rocket science. The simplier you make it the better you'll do. Indicators are a can of worms you may be better off not opening. Similar to those who attempt emotional trading in the zone techniques, users of indicators think they will somehow see the future before it happens, transforming themselves into mini-forex Nostradamuses, becoming rich in the process. It's hokus pokus. Don't believe it. You'd do better learning how to react to market actions than trying to anticipate currencies' next moves. Just work hard, study and use common sense. Be a student of the market and you'll advance. Good luck, Exchanges [/B][/QUOTE]
Forex - Legal? Q Cornering the market http://www.trading-glossary.com/c0453.asp Purchasing a security or Commodity in such volume as to achieve Control over its price. An illegal practice. UQ
Well, they need to update their definition then. Because I was referring to the technique of cornering currencies, not the attempted volume control of a commodity. Not easy to buyout a nation. But by advancing in fx, using cornering strategies are certainly advantageous. And quite legal. x
An excellent post - Hard work and keep it simple. Newbies fail to realise the hard work bit means there is no easy road to success. Keep working at it
Thank you, Toby400 and Gwac. It is true, eternal truths in the forex never change, neither does market Law. The market is no respecter of persons. As Gwac pointed out, many of the same things happen over and over again. The same mistakes are made. Fear, panic, dread, greed, poor speculation... these will always be constants in the forex. There aren't really digital indicators for emotions. Many indicators may reflect emotional trading but only after the fact. For Annie I'd like to add: Learn your trading platform inside and out. Know it like the back of your hand, what it (and you) can do and what it cannot do. For lack of knowing all the facets of a trading platform, thus making wrong trades or mistakes or not taking full advantage of its potential, I'd say many a beginning trader has either failed or been hindered from advancing. Ex