This article is originally referred from XTrade Blog.
Many new traders want to learn forex trading fast, so as to make money and pay their bills. While necessities of life are good to think about, one has to be careful and not to rush.
Trading is very tricky, and so is the education surrounding financial trading of all kinds. This is not about the best forex trading strategy nor is it about impressing other traders. Wise education has to have depth. As well as unique interest on the part of the learner.
As opposed to just learning concepts and ideas in a mechanical way. Students who attempt to impress others with good exam results and fast learning, are not the best thinkers. The best thinkers are the ones who are curious and ask challenging, intelligent questions.
Currency trading strategies require knowing how to deal with confusion and the unknown. The average trading course out there trains students on how to think and act in a disciplined way. Because that is what defines an orderly trading system.
But sooner or later these traders will find themselves facing intimidation. As the market will behave strangely, and two of their best indicators will be in conflict. So what do traders do when their best indicators and methods are in conflict with one another?
Learn Forex Trading Differently
You as a new trader, can learn forex trading in a wiser way. You can learn forex trading by breaking out of the bonds of disciplined trading theories and methodologies. In the case of conflicting indicators, which is an almost everyday occurrence in the markets, you have to dig deeper.
By using fundamentals and chart patterns first, you immediately gain an advantage over the disciplined, ultra-safe trader. Some very good currency trading strategies are possible to develop when one digs deeper. Fundamental analysis itself is a very strange kind of analysis. Since it takes into account investors’ fears and sense of uncertainty. The average market typically stops rallying when uncertainty is in the air.
So there might be few days of downside, intimidating downside. But once the air is clear, and the uncertainty is gone, the market rallies again. Even certain, bad news, of limited impact helps remove uncertainty and the market rallies on such news.
And the average trading course cannot teach such analysis methods because there are thousands of cases and different combinations of events, each one being totally unique! A good fundamental analysts however is able to figure out these events, at least 60% of the time.
Taking Wise Risks Pays and He Who Dares Wins
The wise trader who knows a thing or two about fundamental analysis, has the courage to place a long trade when the market retreats temporarily lower, on uncertainty.
The ultra-safe, disciplined trader on the other hand sees a market price below some support level. So they close all losing trades and get out of the market. But that’s not how battles are won in real life, the ultra-safe trader should have known that life is not perfect, and confusing events are bound to occur.
So by avoiding risk in this case, they end up missing out on some very profitable trades. The wise trader, especially the kind of trader who trades using CFDs and trades throughout the day. Knows that day trading forex live is all about risk and confusion.
And that half the indicators will be wrong at any one time. So they know first hand, that discipline is not going to get them anywhere. Only digging deeper into the markets will.
Original Source: XTrade Blog