When I first started trading Forex it wasn't long before I discovered the sad truth that 95% of Forex traders loose. As discouraging as it was I was determined to be one of the 5% winners. It has been a long hard journey but I did finally make it and you can too, but its going to take time, effort and plenty of patience on your part.
When I discovered the main difference between the winners and losers was how the 95% trade the market versus the 5%. The 5% have learned the intricacies of the market while the 95% use a pile of indicators and let those indicators tell them when to enter and in what direction to enter in, in effect they are trading lagging price data, which is second hand information. These losing traders are not much better than gamblers. They think that some stew of indicators will be a magic potion for success., when clearly, this is not the case.
I was just as guilty as the 95% and used a bunch of indicators when I started out forex trading but when I started to learn how the market behaves and what a simple candlestick chart can tell me I dropped every indicator on my chart. If you are just beginning you may want to use something that can help you identify a trend, however using it solely to enter a trade is a mistake.
I'm sure once you learn price movements or better known as price action you will surely be able to identify a trend and wont need any indicators. This may sound complex but its really not even close to as complex as using a ton of indicators can be. For example what to do when one indicator is telling you to buy and the other three sell? You think sell right? Well what if the buy signal was the right one? Of which is how trading with indicators works a lot of the time. Do you revamp your strategy then? It's a never ending story....
With learning the way price moves you will have a built in strategy with key support and resistance and there will never be doubt of your methods. I'm not saying you will win all your trades but you will be much better off and have a much better chance of being in the 5% category.
Nial Fuller has been a successful Forex trader for many years. He started studying price action when he was 15. Now at 25 he has traded at a major firm for over 6 years. His website offers a lot of free Trading material.
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