2Bull Forex Blog

If there is one basic mistake traders make and continue to make it’s the one in this article and if you make it you will simply lose all your money and do it quickly, so here is the forex chart mistake to avoid.

Lets take a look at this fatal mistake

The mistake is the forex prices can be predicted on forex charts.

No they can’t!

Of course if you are predicting you are hoping and guessing and that won’t get you far in any venture in life, let alone forex trading.

Of course there are many vendors who will tell you prices can be predicted with scientific accuracy and the naïve trader swallows it.

The most popular scientific theories are based around the works of - Gann, Elliot wave and Fibonacci.

These guys never made money with their theories and neither will you - because the fact that markets move at all, proves there is no scientific theory… If there were a scientific theory, we would all know the price in advance and there would be no market - common sense really.

Other forex traders predict but they don’t believe in scientific theories - their just trying to buy low and sell high and this doesn’t work either.

For example - a trader sees the price dip to just above support, assumes it will hold and executes his trading signal. Of course sometimes it works, most of the time it does not.

Rather than hoping guessing or predicting - you need to get the odds in your favour. Forex trading is a game of odds not certainties but get them on your side and you can make a ton of money.

The Way To Win With Forex Charts

Lets say you see prices dip to support you don’t buy you wait for momentum to turn up (you can read about momentum oscillators in our other articles) this gives you advance warning of a shift in price velocity and shows the level is likely to hold.

You can also use momentum to follow a break of support and trading breakouts is very profitable.

It’s a fact that most big bullish or bearish moves start from new market lows or new highs and by following the breaks with momentum on your side you can catch the biggest trends.

So remember:

The next time you see someone say they can predict market tops or bottoms with 90% market accuracy - you know their lying and that if you try and predict with your forex charts, you simply lose all your money and do it quickly.

Use your forex charts correctly. Trade the odds, confirm each move with momentum and enjoy long term currency trading success.

There is lots of forex education available free online and here we are going to give you some tips on finding the best that can lead you to currency trading success.

1. FREE Info

Most of what you will need can be found free on the net. Many of the e-books sold by vendors simply rehash what is found on the net and you can avoid paying for it by simply seeking out the right sources - search around and see what you find and you will stumble upon some good sources.

If you are your trading on forex technical analysis you can find everything you need to know about indicators and chart patterns to build your own trading system. For a novice trader this is the best way to trade, avoid trading news - it’s simply stories that reflect the losing majority, so avoid it.

Your aim is to trade the truth and simply follow price trends and everything you need can be found free - you need something more but I will return to this in a moment.

2. Expert Systems

All over the net claiming they can make you rich with mechanical systems and most will lose. Why? Because - they rely on clever marketing copy and simulated track records done in hindsight. If you see an ad that looks to good to be true pass it by, it is - has never been traded and simply put together by a marketing company.

3. Forex forums

I took a look around a few of the top forums before I wrote this article and my look confirmed by suspicion full of losing traders.

The guys giving advice are generally people who can’t make any money trading forex and it makes them feel better and big to give out their wisdom.

I have been a trader for 5 years and never bothered using forex forums and don’t think you should either.

4. The Edge

To make money you need a method and that’s easily constructed from free info on the net which we touched on in point 1.

You can easily build a system based upon breakout methodology, support resistance and a few momentum indicators and win at forex - just one word of caution:

Discipline

You will have heard how it’s essential in currency trading and it is but it’s very hard to acquire that’s why 95% of traders wipe out their equity quickly.

To ram home the importance of discipline, go to your local online bookstore and pick up some books by traders who have walked the walk, rather than simply talk the talk.

A few essential books are:

Market Wizards EDIT - Jack Schwager

This book interviews trading legends and lots of them and is one of the most popular investment books of all time and with good reason

The Way of the Turtle - Curtis Faith

This book tells the story of the turtles a group of 14 traders who became legends after learning to trade in 14 days and then earning $100 million in just 4 years.

The Disciplined Trader - Mark Douglas

A bit repetitive but rams home the importance of discipline better than any book I have ever read.

The three books above you can pick up for about $60.00 and their worth every cent.

They can explain far better than me my discipline is vital yet so hard to achieve.

Always keep in mind if you don’t have the discipline to trade your forex trading system, you don’t have one!

Trading looks easy yet few succeed - the ones that do build their own trading methods to get confidence which is the first step to trading with discipline.

Do the above get your method from free sources and the books above and you will have a head start on your way to learning currency trading the right way and get vital forex education, to help you win and win big.