Forex Trading - Search For The Holy Grail
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Forex trading is such an exciting occupation, I don't know of many others that give you the possibility of making unlimited amounts of money from a computer anywhere in the world at any time of day.
If you are a Forex trader then you've likely heard this term "Holy Grail" used over and over. Obviously if you can find a way to beat the markets every day then you will become very wealthy, but what is this "Holy Grail" really about?
For some traders with their heads way up in the clouds, it's the idea of winning every trade. I think that not having a losing month would definitely qualify.
One of the traps that many traders get into is the search for a "traffic light system". When the lights are green buy, when they're red sell and when they're yellow stay out of the market.
This can be a dangerous trap as it relies on indicators to tell you what to do and all indicators are "lagging". Price is moving and the indicators will tell you very accurately what price has done, but not what price is going to do. This is a very important concept. Many traders waste years trying to find the perfect indicator combination with no success.
This wasted time could be spent learning from traders who are already trading for a living and understanding how and why markets move. This is sometimes referred to as "Institutional Trading" which is a term for the way that the large bank traders trade. The large banks are responsible for the vast majority of currency transactions. A lot can be learning by studying these Institutional Trading methods.
When you truly consider what you are risking by trying to figure it out by yourself (lots of time and money), it makes sense to find a mentor that you resonate with and learn how a professional trades. |
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Author Resource:-
Watch a forex webinar by fund manager showing advanced forex tactics.
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By :
Alex Harper
Submitted
2011-05-11 17:40:16 |
Article From Article Mayhem
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