The financial markets are consistently luring in new traders
Whether it’s options, forex or stocks, who ultimately look for a quick automated solution to making money. A packaged commercial step by step way to make money easily without using your brain at all. In their own time they find out (the hard way) that this type of commercial sell doesn’t deliver the return on their capital that they were led to believe or expected. Then they stop.
What happens next? Well – they find another automated process and guess what – this doesn’t deliver either. So they start all over again looking for another holy grail. They also tend to move on to indicators that tell them when to get in to a trade, they may start of with the MACD or some sort of oscillator. Ultimately they may have 5 or 6 indicators on the same trading screen all saying the same thing.
Now I am not criticising indicators – they are useful however they should confirm a move and not dictate it
There is not one single indicator on earth that will make you a millionaire from the forex market. There is also not a single trading bot (robot) that will make CONSISTENT gains in all markets. Indicators confirm not dictate.
However to make some decent returns in the financial markets, including forex, we have to have a process thst incoporates a trading plan. This includes good money management, looking at the trend in the higher time frame, good entry strategies based around price action and support and resistance levels and good exit strategies based around support and resistance levels and partial profit taking. Market volatility should also be in there as traders can’t make money from an instrument that does not move for days on end. For stock traders the market, sector and sub-group direction are also very important.
These are the main constituent parts that you will find in any successful traders bible and they should be the main parts of your trading template also:
Indicators should be used to confirm a move based around support and resistance levels and they all work to some degree however the bigger picture needs to be seen and the bigger picture is price. It doesn’t matter whether you use a an ADX cross or a hammer or shooting star candlestick pattern they are the tools that confirm the move.
So before you start your trading career don’t be one of those that is looking for the HOLY GRAIL for trading forex because it just does not exist!