Hello, I started reading about forex on babypips few days ago and i am thinking about one thing. Some people told me that if you want to trade forex you have to know a lot branches of economics. I undserstand that but i don’t know can someone become a profitable trader just from reading some educative lessons like these we have here and exercising on demo account. So can I teade forex if i haven’t studied economics or don’t actually have some prior knowledge before i started reading from this site?
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It certainly helps to understand certain aspects of economic releases but this can all be learned on YouTube. If you decide to go down the route of being a technical trader then you can apply what you learn in the school. Forex is a business, the richest business in the world and it takes a lot of learning to understand it. The more you learn and can harness the better equipped you will be in the markets.
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Ok but I can also learn it even if I don’t studied economics, that is what I eanted to know, thank you.
Someone who can trade off stock charts or commodities charts or indices charts can trade off forex charts. A lot of the success of buy-and-holds stock investors has been down to rising share prices in rising stock markets, not great knowledge of company accounts. Buying what’s going up is a crude form of TA.
Notice how few economists are really wealthy - I suspect they’re mostly working in colleges and windowless bank back offices in jackets with leather elbow patches…
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Yes i could assume that but question was what if I have never traded stocks, commodities or anything similar.
Yes, you can be successful trading Forex without any prior knowledge of trading anything else.
However, as pointed out, the more knowledge you have, the better.
BabyPips’ School of Pipsology (under Education at the top) will give you a good overview of the Forex market.
As for Economics, I would say that some knowledge of how one thing affects another is good but you certainly do not need an in-depth knowledge of it to be a successful Forex trader.
Many people trade on strictly technical indicators (or no indicators at all) without worrying too much about economic news, etc. No Nonsense Forex is a prime example; very successful with only technical indicators.
Hope this helps.
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Absolutely yes
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I saw that people usually spend more time analysing charts than reading economic news but i didn’t know that you can be profitable even if you don’t use indicators, how do they know will the price rise or decline and how they know when is the good time to enter in position?
Yes, it helps thank you.
Yeah of course. You can just start learning it now to add to your arsenal. It’s an information age and all the information is out there to be learned
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It’s called trading on Price Action. Unfortunately, I’m not experienced in that. I use indicators and am still learning myself.
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On your original post. As far as I can tell, the market doesn’t care whether you have a Ph.D. in macroeconomics or if you dropped out of high school. What’s essential is understanding the business of trading.
On price action trading. I trade price action. Everyone is different. As for me, overly simplified, I look for reversals at strong support and resistance areas. For example, if I see price enter a support area that recently caused a strong trend reversal, I would look for buyers to step in (e.g., strong bullish candle) and maintain their control of the market (bullish confirmation). I might enter at the close price of the confirmation candle or I might look for price to pull back to support to enter at a better price. I’m not very good at it yet, but I’m getting better. 
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Hi, I don’t think anyone should trade forex without even knowing how it works. It requires a lot of hard work and knowledge so it is not advisable to trade without any knowledge.
I asked can someone who don’t know anything about economics overcome all tehnical and fundamental analysis, Ofcourse, you can’t just click buy or sell button if u don’t know how to read price chart, how to use indicators or if you don’t even know what is forex.