Forex Prices - 4 Essential Facts You Need to Know About Price Movement to Win
If you want to win at Forex, you need to know how and why Forex prices move and here we will give you 4 essential facts to help you make bigger Forex profits. Most traders don't understand these facts and lose so make sure make them part of your essential Forex education.
Forex prices are made by countless millions of opinions which all come together, to make a price and being humans, we don't think logically we are influenced by our emotions and this leads into our first fact on Forex price movement.
Fact 1. Price Movement is Un Predictable
Those people who think you can predict currency prices in advance are wrong; if you try and predict highs and lows in advance your hoping or guessing and that won't get you far in Forex. Its obvious prices can't be predicted in advance because if they could there would be no market, as we would all know the price in advance.
The fact you can't predict in advance doesn't mean you can't win - you can but you must trade confirmation of a change in price and we will explain how to do this later but now, let's look at one of the most popular ways to trade Forex which causes losses.
Fact 2. Predictive Computer Programs Don't Work
You see lots of cheap Forex software which claim they use mathematics to predict price movement but if markets are not predictable, using mathematics is of little or no use.
Most of these systems are back tested ( check out the disclaimer and you will see the word simulation on the track record) and the system is simply bent to fit the data. When trading forward though they lose, as Forex prices never repeat exactly the same way again.
Using a cheap Forex robot is a guaranteed way to lose money.
Fact 3. Volatility in the short Term is Random
All short term price moves are random and support and resistance levels are not valid in periods of minutes or hours. If you try and scalp or day trade, the odds are against you and you will lose. Always look longer term, where you can get the odds on your side and forget short term trading.
Fact 4. Forex Trading is a market of Odds NOT Certainties
You will have losers in an odds market but that's fine, if you focus on high odds set ups and cut your losers quickly and run your profits, you can make a lot of money.
Some of the most successful traders are ex poker players and you need similar skills to win at Forex. In poker, the successful poker player focuses on high odds hands and bets on them and passes by low odds hands or folds - you should do exactly the same in Forex.
If you trade long term and you have the discipline to keep your losses under control and run your profits, you can make a lot of money.
Play the Odds and Win
Perfection and prediction are a myth, there is nothing wrong with taking losses short term, if you make huge long term gains so forget perfection and being right all the time and focus on making huge long term gains by simply trading the odds.
Questions and Answers
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Created by David Lambert, the CCI was first used as an indicator for determining reversal points in the Commodities Markets. It was then discovered to be very useful in the share and forex markets. It is based on the theory that all activities move under the influence of cycles. The Maxima (+100) and the Minima (-100) occurring at regular intervals. The CCI measures the speed of price fluxuations as determined by oscillators.
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Here I am going to give you 10 simple tips which are needed to enjoy long term trading success and if you understand them and follow them, you can join the elite 5% of traders who make big gains trading Forex.
The 95% of traders lose money in Forex and only 5% win but the 5% who win, make a a lot of money and will know the answer to the question posed in the title of this article. If you don't know the answer to the question or fail to appreciate its significance, you will lose too.
With the rise of the internet, we have seen the rise of the vast number of vendors selling cheap Automated Forex robots. There a popular choice for most novice traders but instead of regular profits the trader gets wiped out - let's look at why.
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In this article, we will study a group of novice traders, who had two weeks training and then went on to make millions in profit. You may not make millions but if you see how they made money, you will see how you can enjoy Forex trading success.
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