I have seen people talk about technicals such as fibos, moving averages, bollinger bands, as well as fundamentals as how American economy doing etc. Do I really have to know all those things to trade and make money? I know around a dozen websites that give daily updates, forecasts even forex signals. They are all biggies such as www.ibtimes, mataf.net, and so on. I am sure those guys know all the stuff better than me! Besides, they post everyday bragging that how much pips they did the previous day with their signals.
Why should I bother myself by drawing fibonaccis, fallowing business news and all the stuff? Don’t you think its wiser to play along with those biggies?
Well it depends on how you wana trade, you want to have atleast some experience in both fundamentals as well as technical but there are people who just do one or the other, and slowly work on the other.
Not everybody uses fib lines, but I use them as a point of reference, sometimes they are usefull sometimes they are ignored… sometimes they fake out (look like a bounce with no follow through, then break through the level shortly afterwords) I guess its just how you play it.
I havnt seen those sites but if its nothelping you its not helping you reguardless of who it does help… there are some stragies that I simply cannot do(yet – I wana fix what is wrong so I know and have more options…) so I dont trade them, I still read about/research them but If I cant do it its not going to help me, and not to sound selfish but in this game… its about me me me me
There is a website that posts daily fx forecasts. It simply says what is the trend, what is the expectation of the day, whether it is up or down, if I should sell or buy, etc. Most of the time, they proved to be right. But on some crucial days they really sucked. That website was the reason that I made $ 1200 in a day and than blown the whole account the next day with their wrong signal!!!
I am not a pro, so, I myself can not figure out the market direction by looking at fundamentals. It looks too complicated to me. Remember, all the fundamentals were screaming that dollar would sit over 1.600. And suddenly, everything changed in a day. (Well, not so, but for us, amateurs).
Here is another thing to think about: what if the company, whose signals you were following, decided to stop putting out signals or stopped doing business? What would you do then? stop trading?
Learning the fundamentals of this business (i.e. technical and fundamental analysis, money management, market psychology, etc) gives you the ability to develop your own skills and create strategies that you understand and comfortable with. With those skills you will be able to quickly adapt to the ever changing market environment and improve your own trading.
Why give the decision of where your hard earned money goes to someone else? In my opinion, learning to do it yourself is harder and takes more time, but better for your account in the long run.
They say nothing worth having comes easy. Definitely applies to the trading business.
I’m new to trading, but I think if you’re only in it for the money, then Forex, or trading in general, is not for you.
I really enjoy learning the different aspects of technical and fundamental analysis and watching markets develop. I think my attitude will only benefit me as far as making money, and that’s true with any field of work. If you enjoy it, you’ll enjoy practicing, and therefore you’ll get better at it much quicker than those who do it for other reasons.
I feel when people become obsessed with money in trading, it’s the same feeling people get while gambling in casinos. People watch the money going around and they want a piece of it. Except the best card players are never really in it for the money, and they usually end up being the ones who win the most.
