Money For Grabs

Nowadays everybody is looking for the short cut when it comes to trading. They don’t focus on the oldest form of technical analysis: Price Action. It’s a shame more traaders aren’t interested.

You can tell this is true by just going to any forex forum. What do you normally see people talking about? Usually its about some magical system filled with a bunch of indicators or a Forex Expert Advisor that basically uses those same lagging indicators to come up with an automated forex trading system.

What’s wrong with this picture?

Well for starters, they need to realize that all the indicators like stochastics, MACD, RSI, etc…. are lagging. They are great for telling you what has already happened. It provides no ability to forecast future prices.

The other thing that these traders need to understand is that 95% of all forex traders lose money. If that’s the case why would you want to be doing the same exact thing that every other struggling trader is doing?

Think about this from a logical perspective. Chances are traders that are on a forum are struggling with their trading. If that wasn’t the case why would they even be there? Most truly successful forex traders don’t have the time nor the inclination to hang out in a forex forum.

The real popular discussion on these forums are about the Forex Expert Advisors. For anybody that doesn’t know what these are, they are basically trading robots. Developers use trading systems with lagging indicators so that this robot trades for you, while you’re away.

It’s pretty obvious that this would attract almost every new trader. Who could pass up all that free time that an expert advisor gives you. You can be out the whole day and when you come home the trading robot has made you a millionaire, right? Well, you better thing again.

People are asking way too much from these expert advisors. Think about what people asking from them. They are asking them to acccomplish something that most forex traders in the world can’t do: Make money trading forex.

For those that want to have a deeper understanding of the market then, I recommend you get rid of all your indicators and start trading the markets on a clean chart. Just follow the price action. See if you can start to notice patterns that are always happening. These are the kind of patterns you need to focus on, because this is how you forecast future prices.