If you want to learn currency exchange properly then you need to make sure you know which way to place your trading signals and predicting will see you lose. Predicting is simply hoping or guessing and is a better way to make profits which is the subject we will cover here.
If you learn currency exchange and want to learn forex trading correctly then you need to understand the next point.
Don't predict prices act on confirmation and this will see you trade with the odds - if you don't trade with the odds you will lose.
You can't predict so don't try, simply learn to act on the truth:
The reality of price momentum.
Before we cover this in more detail, let's dispel the currency trading myth that has led to so many traders trying to predict.
Currency prices move to a scientific formula.
Theories such as Fibonacci Gann and Elliot Wave promote this myth and there are plenty of vendors spreading it and making money out of it - Fact is neither Elliot nor Gann made money with their theories nor Fibonacci theory was hijacked and was never even supposed to be applied to trading!
There is of course no scientific theory that lets you see the future.
If markets were scientific, we would all know the price in advance and their would be no market!
Common sense - however many forex traders fall for scientific theories and lose their money.
Let's take an example to help you learn currency exchange for profit the right way.
For example, on your currency trading system, you see that prices are coming to important support or resistance - but you don't just execute your trading signal.
You want proof that the level is going to hold before you enter the market to know the odds are in your favor.
You do this by looking at currency price momentum and watching for a changes in the direction you wish to trade to support your view.
This is essential in any successful forex trading system and you need to learn how to spot these momentum changes. If you can do this, then you will be trading with odds on your side and can enjoy currency trading success.
To see shifts in price momentum you need some indicators and its now time to make momentum oscillators part of your forex education.
If you are learning currency exchange for profit, then two of the best are:
The, stochastic and the Relative strength Index ( RSI).
These will help you see shifts in price momentum and help you execute your trading signal in line with these momentum changes.
If you want to learn forex trading correctly momentum indicators are simply essential. We don't have time to cover these indicators in more detail here but make sure you look them up in our other articles.
Trade The Truth
If you look at support and resistance then use momentum to confirm the move you will be trading the reality with no hoping or guessing
You may say that you miss a bit of the move i.e the first part of the change but as you can't predict when this is going to happen anyway and keep in mind if you get a good chunk of the profits say 60% that's enough to pile up big gains over the long term.
Always remember the old traders saying:
"A top or bottom picker soon becomes a cotton picker"
This saying is over half a century old and it's as true today as it ever was if you try and predict and jump the gun you're going to lose.
The major lesson when learning currency exchange and trading for profit is simply:
Currency trading is not a game of certainties - it's an odds game and you need to play the odds to win just like the successful card player.
Sure, you won't win every hand but that won't stop you building big profits over the longer term.
If you learn currency exchange with the above points in mind, you will soon be spotting opportunities for profit without hoping guessing or predicting and simply trading the truth and that's the only way to win longer term.
BECOME A PROFESSIONAL FOREX TRADER FROM HOME GRAB: 2 X CRITICAL PDFS AND MORE
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