Last week I received a call from a trader who was having trouble getting consistent results.
He has been operating for more than 2 years …
I asked him to share with me the way he has been operating … and guess what?
He has been using pure strategies with technical indicators …
This is the situation, you can have 2 or 5 or even 10 years operating the market, but if you keep concentrating on “the wrong things” you will not achieve it, regardless of the years of experience you have, it will be very complicated. Every person dealing with Forex needs to do smart online trading!
There is a very famous saying by Albert Einstein:
Do not expect different results doing the same.
To get different results, you have to do different things and stop doing what has not worked for you.
Do you know what I’m talking about right?
So what I want to share with you today is a list of things that you need to work on to get better results.
This is the list you would send to your best friend, if you wanted to start trading the right way from the beginning.
Market analysis is not about guessing what the market is going to do, but about understanding what the market is doing now and what it is most likely to do in the following hours / days.
Forex Market Analysis
This information helps us determine which pairs to operate and which ones to forget best (for a while).
However, if you are using tools such as:
- Elliot waves
- Other magic formulas
Please leave them out … they do not do much good: do you really think that a formula can determine the direction of the market? That makes no sense. I’m not going to go into details of this, it’s outside the context of the topic of this article, so you’re going to have to trust me in this. To get the details you can read on online reviews available on the Net.
As I was saying, the key to making a good analysis is to understand how the market moves … and here I give you a basic principle:
Most of the time, the market moves in “swings”, from one level to another.
And if the market normally moves from one level to another, we know that:
If you are rejected from an important level, it is very likely to continue in that same direction until you reach the next level. And in the same way, if you break through an important level, it is very likely to continue in that same direction until at least you reach the next level.