How can you consistently win in the FX using Technical Analysis?

[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?

[piprosterous]

Well I don't think that everyone uses the same tools/indicators. You have to remember that there a vast amount of traders so even if 100,000 traders are using the same system, that still only makes up a small percentage of the entire Forex world.

[dzver]

Originally Posted by piprosterous

Well I don't think that everyone uses the same tools/indicators. You have to remember that there a vast amount of traders so even if 100,000 traders are using the same system, that still only makes up a small percentage of the entire Forex world.

I'm total noob in Forex but i think this :
Forex include every one that buy or sell curency no matter is he/she use internet or not.
I mean if i'm Mr . X and i trade with ceramic tails and i buy them from China for USD ,that make same reaction as some one siting behind his PC and buy 1 lot.If i'm rigth market is much more liquid and fundamental dependable than how many ppl use that tool for trade or another.In short i think that Forex is too complicated and huge to be able to any group of ppl to manipulate it.

If i thing right or wrong please discuss.Thank you in advance.

[dunny]

People don't look at the markets the same way. Even though they might have the same tools, every person has their own view of how to interpret the market using those tools. It's kind of like those weird sillhoute pictures where doctors ask what you see. 2 people can look at the same picture but see different things. The same applies to charts and technical analysis.

[pristen]

If you want to be consistently profitable using TA, you have to be aware of its limitations. Technical analysis can only give you probabilties of where the price will go based on what the price has already done. Fundamentals will ultimately drive the prices. Use indicators as guides, not as hard facts and don't try to see what you want to see on a chart. The more you do it, the better you get. Remember, it's an art, not a science

[honeb]

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?

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.

[forexgump]

We have to remember that technical analysis is only a part of consistently winning in FX or any kind of trading. Trade management skills play a big part in success after the trade is on. The FX market is fast and constantly changing, so your initial analysis of the market might change as well. If you know how to correctly adjust positions (i.e. scale in and out of positions, adjusting stops and limits, etc), then you can turn a losing trade into a winning one and create risk free trades. Like pristen mentioned, trading is an art, not a science, so learning to adjust trades will take time and a lot of experience.

[topchess]

Couldn't agree more to the statement above.

Technical analysis is a part afterall. You can be a technical hero and still lose due to poor money management, or emotions.

A good trading system in my view is that one which will bring to you more winners than losers. That is what named "Profitable". But will the trader follow every signal from his system? and I mean every signal. Will he follow the stoploss, profit projection? An example would be. If you start trading a system, and you get some losses in streak. That does not mean it's over, with proper stoploss and profit level in place, a good signal can let you recover what you lost in bad signals and more.

I wanted to say it in one word. Discipline. Some people are not very talented in Technical Analysis but with discipline, they make more money.

Almost all traders will use the same tools, but strategic plans play the big role in winning and losing.

[oedipean]

is it true ?

[PrivateFX]

Money management is what will make a difference between a profitable an unprofitable trader. There is no technical analysis or fundamental analysis strategy out there that will let anyone profit consistently. You need to control emotions and have money management skills. Technical and fundamental analysis is just a small step to being successful. Learn to control emotions and money management, then you stand a chance.