I’ve been at this strong for one good year, well a little less but almost, and I have learned a lot. I owe a lot of it too b-pips and alot of people on these forums. I have tried to contribute from time to time from what I have learned so far.
I feel now though I am at a road block. I state of confusion, not knowing where to go next. See, I am one of those people that has to know where things are going and how things work. Learning FOREX, I end up asking myself and others more questions than ever to get certainty.
My latest question to myself that has me turned around on everything I learn is how the market actually works. You know the whole supply and demand aspects of it. Thinking deeper in this and reading on it a bit, my thoughts have gathered and came up with the conclusion that with the laws of supply and demand, there is no need for technical analysis in FOREX.
Ill explain my thought (reasoning). Everyone knows that the more of the currency you have in the market the weaker its going to be and the less the more valuable its going to be due to supply and demand. As banks, companies, forex gurus buy or sell the pertaining currency it either floods or dries up in the market, moving the price. If you were to watch say usd/jpy and usd seems strong, says interest rate increase, you want too buy. Well over in Canada, they decide to hike there interest higher, so banks, companies, forex gurus buy the Canadian dollar, sell US and whoop…there goes the US dollar weaker due too the sell off. Well if your hear watching usd/jpy…you have bought but its going the wrong way? Its getting weaker because the sell off in USD/CAD is stronger than the buying in USD/JPY.
So I am confused how you can possibly keep up with pairs because then you would have to know the economic factors that factor in on each pair that pertains the two currencies you are trading. Also, TA falls apart because if the laws of supply and demand are in effect, its doesnt matter if there are over bought or oversold conditions, the supply and demand is going to determine where price needs to be.
Maybe I’m lost and I am in one of those starting out crisis but its does make sense to me and through my practice trading, I have been shown this.
SOrry for the long post but just was something I wanted to get out there. See if anyone has anything to comment about it. Thanks guys/gals.