Foreign Exchange Trading Issues: Technical Analysis
This mysterious technical analysis.
For all new traders technical analysis seems to be a real science, a powerful and effective instrument that guarantees a profit and a complete safety when working in the financial markets. Actually it is not so I should so. The technical analysis is not a science. It is rather a set of certain assumptions and rules which are constantly updated with new elements and rules.
It goes without saying that you can study the bulk of the theory. But it seems to me this will be of almost no use for you. This is the same thing as going for a walk with a pistol with a strong belief that you wouldn’t apply it anyway. It’s clear that a person with a weapon has got a completely different psychology when compared with unarmed people. The most surprising thing is that this person with a pistol is highly exposed to a possibility of being engaged in trouble which unarmed people would just pass by. But please don’t think that I’m just trying to plant a grain of skepticism with regard to technical analysis. I just want to express my own point of view on this matter.
Therefore, in spite of all these clever arguments it’s rather evident that without the technical analysis we can’t be professional successful traders. And we must clearly understand what it is, and what extent you can trust it to.
The technical analysis shows us a very good state of the market at the moment especially in the past his “energy” state. And the most important postulate of the technical analysis is the inertia. Actually it is a universal law.
What can be at the disposal of a trader? In mist cases traders use numerous indicators, oscillators as well as different graphs. In fact there’s something in all of this mentioned above which can make a beginner go mad. The matter is that the total number of tools is far from one hundred, but almost all of them simply repeat each other.
In fact if you are interested in the main theory of the technical analysis then you can get this knowledge almost everywhere. If you want to expand the general arsenal of indicators you can do it by yourself. But, in my opinion, it does not make much sense though it’s a very interesting practice I should say.
To complete our discussion of the applicability of the technical analysis I’d like to say that there’s nothing similar to this in other spheres of human life from my point of view. In fact I can say that I respect the technical analysis and to a certain degree I need it. But at the same time this mysterious science keeps on giving us new surprises every day.
As in any other niche of our life foreign exchange market needs some knowledge.
Of course, you can start forex trading and be quite successful about it. However sooner or later the losses will come. This is when you might think “Why didn’t I start with a good forex book?”
That does not mean that after reading even the top forex book you will start closing trading positions with huge income, but this info will save you from
lots of traps.
Tags: Forex, forex book