| Using forex charts and technical analysis
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| | 5. The Markets Move To a Scientific
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| is a great way to enjoy currency trading
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| | Theory
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| success - the problem is most traders
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| | Many traders believe that as human nature
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| fall victim to common myths and join the
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| | is constant there must be a repetitive
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| 95% of losing traders. Here we will look
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| | scientific formula that markets move to
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| at the forex chart myths to avoid.
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| | and they fall for scientific theories
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| 1. Do Not Try and Predict!
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| | such as those sold by discipline of Gann,
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| Probably the most common error of all is
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| | Elliot and Fibonacci and they lose.
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| when a forex trader tries to predict
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| | Why?
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| where a price is going to go to next and
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| | Because its pretty obvious that markets
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| it's doomed to failure - Why?
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| | don't move to a scientific theory as if
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| Because if you predict you are hoping and
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| | it did we would all know the price in
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| guessing and you will find your
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| | advance and their would be no market!
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| predictions are about as accurate as your
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| | This is really common sense but you would
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| horoscope.
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| | be surprised at how many traders base
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| You don't get anywhere in life by
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| | their forex trading strategies on
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| predicting and certainly not forex
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| | scientific nonsense.
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| trading - you need to trade the reality
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| | 6. No Indicator works all the time
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| of price change.
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| | This is obvious however you would be
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| 2. Trade Valid Data
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| | surprised at how many traders simply
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| If you want to trade successfully you
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| | think buying dips to a moving average is
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| need to trade the odds and you cant do
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| | a great way to make money! Always use a
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| that in forex day trading because the
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| | combination of 2 or 3 complimentary
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| time period is to short for the data to
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| | indicators and it's always good to use
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| be valid. It doesn't matter how good your
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| | support and resistance lines as well,
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| forex trading system is, apply it to day
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| | when generating a trading signal.
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| trading and you will lose.
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| | 7. Using Indicators Incorrectly
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| 3. Complicating a Trading Plan
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| | We just gave you an example of using an
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| It's a well know fact that simple trading
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| | indicator in isolation and also buying a
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| systems work better than complicated ones
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| | dip to a moving average is incorrect
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| as they are more robust in the face of
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| | usage - Why?
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| ever changing brutal market conditions.
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| | Because it's a lagging indicator and
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| Add to many indicators in and your system
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| | cannot confirm trades - you need to
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| will have more elements to break.
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| | combine it with a leading indicator.
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| So remember keep your currency trading
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| | Another example is traders who set stop
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| system simple and profitable.
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| | losses at the outer bands of the
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| 4. Not Buying Breakouts
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| | Bollinger band - this is not a good idea,
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| Most traders like to buy low and sell
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| | because it's a volatility band that
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| high and this is a by product of trying
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| | changes all the time, may move your stop
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| to predict. Traders simply don't like
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| | to far away and cause you a big loss.
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| buying trends in motion when they have
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| | The above are common errors and if you
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| missed a bit of the move - well if you
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| | make any of them you will lose. Forex
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| don't, you will never catch the really
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| | charts are a great way to make money,
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| big trends and will lose.
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| | charting is simple to learn, time
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| It's a fact that most major moves start
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| | efficient and works so learn how to use
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| from new market highs NOT market lows -
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| | your forex charts correctly, by avoiding
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| so you need to forget buy low sell high,
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| | the above errors and you can enjoy long
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| as a way to make money and think- buy
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| | term forex success.
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| high sell higher.
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