Quote:
Originally Posted by noob4fx
I mean, if everyone is using technical analysis then how can you truly get an edge over anyone if everyone is using the same tools/indicators as you?
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the market is not run totally on technical analysis. even if everyone one gets tought the same techniques i doubt that this 90% of traders fail would decrease. this is because not everyone is built for trading. technical analysis requires interpretation and many people can interprete the same tools differently. TA only gives you possible opportunities and warnings but you have to interprete what they mean to you. trading is a personality game. not everyone is suited to be a trader. but people will always trade based on the kind of personality they have. what really runs the market is greed and hysteria. if you allow your trading to be diven by these two then you will end up in the 90% pool who are just trying to gamble and get lucky.
anyone can play poker. its easy to learn and once you got the basics you can start playing right away. now just cause you know how to play doesnt mean you know the game. you need to understand the fundamentals and be able to analyze what hand you have infront of you and predict what the other players are doing. also you need to come to the table with an adaptable stratagy. most gambling games are games that dont nessasarily work on pure luck. some people have come up with creative ways to beat the house consistantly just by using their brains and knowing how to play the game. now in the world of casino thats called cheating. the casino house want you to know the rules but they dont want you to play the game. now with trading most people how how to play but very few know the game. two trader can be taught the same techniques but after 1 year of trading you will find that they will make different results.
when you first learn the forex market you only hear how profitable it it. th possible returns are just outragouse but what you dont hear is that its only profitable to the 10% that know the game and its the 90% that ends up paying the 10%. the trick to technical analysis is being the 10% that know the game. thats all.