Currency Trading Education – Find Out What the Gurus Aren’t Telling You About?
It seems like every trading guru in the world is offering the exact same currency trading education. This is mostly due to the fact that they all believe in the same thing: Slap on a bunch of indicators on your chart and come up with a “system”. You don’t need a guru for that. Watch I’ll pull one out of thin air:
Put stochastics indicators, a couple of moving averages, and an MACD on your chart.
Only buy when the moving averages cross each other going upwards and when stochastics are oversold and when MACD shows positive price divergence. Now, only sell when moving averages cross each other going downwards and stochastics are overbought, and MACD shows negative divergence.
There, a system just off of the top of my head.
There are so many things wrong with this that I don’t even know where to start.
Let’s begin with the obvious fact that everything you just put on your chart is completely lagging. It’s all information telling you what has already happened. It’s great if you want to know what has has happened in the past and how these indicators reacted to them, but it doesn’t mean much for the future.
The other obvious problem with this: Did you notice you didn’t have to look at the price while trading this? Its not important for trading a system like this. That should be a major red flag. There is nothing more important than price when it comes to trading in any market. Frankly you could throw out every single indicator that’s on your charts, and you’ll be left with all the information you’ll ever need to trade forex successfully.
By: John Templeton