Harsh Words About Forex Trading - There is NO Holy Grail

Every year the financial markets attract newbies to forex, stock and options trading and a large majority of them are looking for an automated solution to making money. A packaged process that entails following each step to fit any type of trade that is in front of them. Then they find out, in time, that this type of activity doesn't give them the ROI that they expected or were led to believe. So what happens? They stop.

Low and behold, they then move on to ANOTHER packaged automated process and this ALSO doesn't deliver to expected levels. They keep doing the same thing and repeat and rinse all over again. They also tend to move on to indicators that tell them when to get in to a trade, Sensor swab they may start of with the MACD or some sort of oscillator. Ultimately they may have 5 or 6 indicators on the same trading screen all saying the same thing.

Indicators have their uses however (IMHO) they should be used to not to dictate an entry but to confirm the entry. Not a single indicator exists that will make a consistent return over a number of years in all markets - they help confirm a move and give a level of validation but they should not drive it. Forex robots do not work either.

In order to be successful in the markets we DO have to have a trading plan with some basic factors built in that do not rely on automation of entries. This should entail exit strategies based on partial profit taking, entry strategies based on S&R levels and price action and higher timeframe trends.. The volatility of the pairs are also important as the market has to move. Trade sectors and sub-group indices are very important for stock traders.

You will probably find that these ingredients are in most of the favorite recipes of all the successful traders and I can see no reason why they should not be in yours also.

Back to indicators. They should be used around key price action movements at S&R levels when also taking the bigger picture in to account. It doesn't matter whether you use a an ADX cross or a hammer or shooting star candlestick pattern they are the tools that confirm the move.

Don't start you trading career by looking for the HOLY GRAIL of forex because you will search for a long time - it doesn't exist.

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