Headline News About Forex And Forex Trading
Our Featured Global Forex Writer
The First Commercially Available Stock Trading "Robot" Which Earns $346.77 Per Week
Forex Trading - Can You Use Too Many Technical Indicators
By: James Woolley
The majority of people who trade forex use technical analysis to make their trading decisions. They generally use a wide variety of the hundreds of technical indicators available at their disposal, but how many should you use if you want to be a profitable forex trader, and can you use too many?
There's no question that the internet, and the subsequent ease of access to technical charts and indicators, has led to more and more traders being able to learn and become accomplished at using technical analysis to help them make trading decisions.
Indeed, people will spend hours on end experimenting with numerous different technical indicators in order to find that holy grail combination that will help them to become rich from trading the forex markets.
However no combination will prove to be 100% successful. The key is to find a combination that suits your trading style, and enables you to make high probability trades that will give you a positive equity curve (ie profits) in the long run.
If you have a sound stop loss policy and a rigid and disciplined trading system based on certain indicators, then you can make a good income from forex trading.
You don't need to use several indicators at once. Indeed many top traders argue that you should minimise the number that you use, simply because the more you use, the more you will get conflicting information, and confusion and uncertainty does not equate to profits.
For instance you may use six different indicators to help you make your entry and exit positions, but you may, for example, have four of them indicating an oversold position and telling you to enter a long position, but the other two are crossing downwards and indicating a forthcoming downwards movement, so in this case you would probably abandon the initial long trade you were going to make.
This is further complicated when you use multiple time frames because this becomes even more of an issue. Multiple indicators over different time frames will invariably give you conflicting information and the net result will be that you end up not trading at all, and essentially always being afraid to take a position.
This is why so many top traders recommend using just a few tried and tested indicators. You don't need to have a really complex set-up to be successful. You can make a decent living from forex by just sticking to a few basic indicators like RSI, stochastics and MACD, or just using support and resistance levels to make trading decisions.
Furthermore, some traders, like Avi Frister for example, only use one indicator, and argue that it's the only one you really need - price.
So if you're striving to become a profitable trader, don't overcomplicate things. You can be just as successful using just a few simple indicators than constantly trying out the latest and greatest new indicators in order to find that elusive winning combination.
To read more about Avi Frister http://theforexarticles.com/forex-trading-machine-review/
Forex Snippets
forex forum
Forex currency trading is a form of trading that offers a much greater potential for profitability at the same time the risks are much greater. Foreign currency trading is trading based on the always fluctuating currencies of other countries and how they interact with each other. Since there is no single dollar value, as fluctuations in one foreign currency affects all others, foreign currency trading is always exciting and always changing directions.
forex traders
What is Forex or Foreign Exchange: It is the largest financial market in the world, with a volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.
forex training
With a daily turnover of over trillions of dollars, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. The Forex market is an over-the-counter market where buyers and sellers conduct foreign exchange business using different means of communication.
Your Latest Global Forex News
How UBS came undone
Thu, 24 Apr 2008 10:13:42 EDT
UBS Chairman Marcel Rohner confirmed today what has been one of the worst kept secrets on Wall Street: An astounding $38 billion in subprime trading losses are forcing UBS to finally abandon its years-long dream of building a global investment bank.
How To Trade Forex
Forex Trading Software
How To Trade Forex
Forex Trade | Online Forex
The First Commercially Available Stock Trading "Robot" Which Earns $346.77 Per Week
Forex Trading - Can You Use Too Many Technical Indicators
By: James Woolley
The majority of people who trade forex use technical analysis to make their trading decisions. They generally use a wide variety of the hundreds of technical indicators available at their disposal, but how many should you use if you want to be a profitable forex trader, and can you use too many?
There's no question that the internet, and the subsequent ease of access to technical charts and indicators, has led to more and more traders being able to learn and become accomplished at using technical analysis to help them make trading decisions.
Indeed, people will spend hours on end experimenting with numerous different technical indicators in order to find that holy grail combination that will help them to become rich from trading the forex markets.
However no combination will prove to be 100% successful. The key is to find a combination that suits your trading style, and enables you to make high probability trades that will give you a positive equity curve (ie profits) in the long run.
If you have a sound stop loss policy and a rigid and disciplined trading system based on certain indicators, then you can make a good income from forex trading.
You don't need to use several indicators at once. Indeed many top traders argue that you should minimise the number that you use, simply because the more you use, the more you will get conflicting information, and confusion and uncertainty does not equate to profits.
For instance you may use six different indicators to help you make your entry and exit positions, but you may, for example, have four of them indicating an oversold position and telling you to enter a long position, but the other two are crossing downwards and indicating a forthcoming downwards movement, so in this case you would probably abandon the initial long trade you were going to make.
This is further complicated when you use multiple time frames because this becomes even more of an issue. Multiple indicators over different time frames will invariably give you conflicting information and the net result will be that you end up not trading at all, and essentially always being afraid to take a position.
This is why so many top traders recommend using just a few tried and tested indicators. You don't need to have a really complex set-up to be successful. You can make a decent living from forex by just sticking to a few basic indicators like RSI, stochastics and MACD, or just using support and resistance levels to make trading decisions.
Furthermore, some traders, like Avi Frister for example, only use one indicator, and argue that it's the only one you really need - price.
So if you're striving to become a profitable trader, don't overcomplicate things. You can be just as successful using just a few simple indicators than constantly trying out the latest and greatest new indicators in order to find that elusive winning combination.
To read more about Avi Frister http://theforexarticles.com/forex-trading-machine-review/
Forex Snippets
forex forum
Forex currency trading is a form of trading that offers a much greater potential for profitability at the same time the risks are much greater. Foreign currency trading is trading based on the always fluctuating currencies of other countries and how they interact with each other. Since there is no single dollar value, as fluctuations in one foreign currency affects all others, foreign currency trading is always exciting and always changing directions.
forex traders
What is Forex or Foreign Exchange: It is the largest financial market in the world, with a volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.
forex training
With a daily turnover of over trillions of dollars, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. The Forex market is an over-the-counter market where buyers and sellers conduct foreign exchange business using different means of communication.
Your Latest Global Forex News
How UBS came undone
Thu, 24 Apr 2008 10:13:42 EDT
UBS Chairman Marcel Rohner confirmed today what has been one of the worst kept secrets on Wall Street: An astounding $38 billion in subprime trading losses are forcing UBS to finally abandon its years-long dream of building a global investment bank.
How To Trade Forex
Forex Trading Software
How To Trade Forex
Forex Trade | Online Forex
posted by forexman at 6:12 PM
0 comments
