Can You Hear The Socio-Forex Buzz?
While it is beneficial for a stock to move in one Vidvamp Review direction for extended periods of time, it is not beneficial for a currency to move in that same fashion. All currencies are is the stock of a country. But unlike a stock, the central banks intervene regularly to stabilize the value of the currencies. This stabilization initiated by central bank intervention creates extended sideways activity.This means that price is changing direction frequently as it hits the top and the bottom of a range, creating a sideways trading environment.
The tools and techniques that were designed to trade in other markets decades ago before the internet not only do not perform well now in the markets they were originally designed to trade in, they will blow up your trading account when attempting to use them in the forex.If you want to make consistent profits trading the forex and pay yourself at the end of each month, you need to be trained in reversal techniques and break out strategies based solely on interpreting price action.
Another big change is that the internet has given the solo forex trader access to free real time charting. Indicators are obsolete when trading the forex on an intra-day basis because they are lagging. The leading-edge traders that are ahead of the curve are trading solely off of price action, something that could not be done before the internet became mainstream.Moving averages are over 50 years old. Bollinger bands, Stochastic, and so on are just as dated.
These realities are difficult for many to face. Just as the post office and home land-line telephones are becoming obsolete, so are these obsolete trading processes that do not work in the forex. Yet many keep their head in the sand and fight the change by sticking to them.Sure some of these archaic tools and techniques still work in slow moving, low volume markets. However, the forex is the largest, most volatile market in the world so you have to be willing to constantly stay focused on learning leading edge processes. More importantly, you have to stop using the processes that are no longer effective or were never designed to be used in the forex.