Learn Forex By Avoiding Mistakes Other Make

So you want to learn forex? Well, that means you have to make an important decision. You have to choose what kind of analysis you are going to use. You can either decide on technical analysis or 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.

The sad thing is that there are also a bunch of traders out there who have never taken the time to really learn either of the methods. I know this sounds rather irrational, but many traders prefer to use their own instincts instead of learning how to properly analyze the markets.

This may sound funny to you, but there are a lot of traders who have no understanding of some of basic fundamentals, like news events. For instance, many traders have absolutely no idea as to the importance of Non Farm Payroll Numbers or Foreclosure numbers. It’s rather unfortunate.

There are a ton of traders who still don’t know if a rise or fall in interest rates is good or bad for the value of their currency.

This really wouldnt be that bad if traders really took the time to learn about analyzing the market from a technical perspective. But, as you may have guessed, most dont do that either. To many traders, technical analysis means shoving a bunch of indicators on your charts and hoping that these indicators are giving them the correct information they need.

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 are really serious about learning to use technical analysis, then I strongly encourage you completely get rid of your indicators start learning about price action.