Many people try to know the magic indicator in their trades when they are trading. They know indicator helps you to know the price trend and pattern but they cannot tell you where the price will go. It is only possible when you are analyzing the trend with your strategy. As the market is big and there are many ads on the internet and Facebook, it is easier for traders to get distracted. This article will tell you why there is no magic recipe in Forex trading. Though you may not believe it because many brokers will still say they have the best indicator in the market, you should believe it that profit can only be made through your handwork and practice.
Trading is one of the most sophisticated business. Those who really want to become successful must learn to trade from scratch. Many people in Australia jump into the retail trading profession without even knowing the proper way to analyze the market data. The majority of the traders around the world don’t think proper education is required to trade the market with an extreme level of accuracy.
Running after the Holy Grail
All the newcomers in the Forex market run after the Holy Grail. After trying the differing trading systems, they start to think this market is manipulated by outside forces and that no one can make profit consistently. Before saying this, just remember that more than 90% of traders are losing money due to their lack of trading knowledge and discipline. There is no such thing as the Holy Grail in the Forex market. If you want to make a consistent profit, you must develop a systematic process to identify top quality trading signals. Forex trading is not like gambling. You need to have the ability to take calculative decisions or else you will end up losing a huge sum of money. Write down your trading plans and forget about the Holy Grail. Learn from your mistakes and try to trade with the market trend.
The indicator only forecasts about the possible trend
One of the limitations of using the indicator in your trade is they only forecast where the price will go. We know many traders will ask what the difference between analyses and indicators is then. The analysis also forecast but there is a small difference. When you are getting the predictions based on your analysis, it is also based on the past trends, movements and also on your own understanding. It does not come from a robot that has been developed by the brokers. The indicators will only forecast but there is no basis. There are chances these forecasts will be wrong and you will not get the complete information. The possible trends that are predicted by the indicators have chances to go wrong but your analysis has more chance to go correctly. In Forex, you cannot make even small mistakes in live trading. This is why any broker telling you to use their magic indicator is lying. There was no magic recipe and there will never be.
Indicators cannot replace the strategy
Your strategy is the tool that you use to achieve your goal. If you are thinking to play smart and start using the indicators, you are wrong. They will not help you like your strategy and you will have more losses. Many traders have tried this plan but they did not succeed. If you do not want to waste your money, do not place your trades based on the predictions of indicators. They can be complex but they are not perfect, nor as good as your own analysis.
Trading success is achieved through practice
You get to become successful in the old fashioned way. Though the industry is live you should use the old ways when you are trying to make profit. If you do not practice in your demo account, you can never make money with any indicators.