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Forex Trading - The Common Indicator Myth

 


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I see it all the time. People saying that you can no longer use the common everyday indicators that come with every trading package to make money in forex.

The funny thing is there are usually two kinds of people who are saying this. One kind is trying to sell you something. The other kind is failing in trading and instead of taking the blame and finding the solution, they blame what ever is handy. It's the old adage, a poor workman blames his tools.

Let's get one thing straight. Indicators don't make money. That doesn't happen. They are mathematical formulas and squiggly lines on the chart. They don't do anything by themselves.

It's how you use them. It's all about you, and how you apply them.

Using common indicators, shoddy money management and poor (read untested) exits is a good way to lose money. It's one of the best, in fact.

On the other hand, proven exits and good money management will make you money. Notice, I didn't mention that you needed good entries in the market. It doesn't really matter. You're entering with a lot of other people. After all you're using the indicators that lots of others are.

The real key here is testing. In other words how do you exit the market? That is what will make you unique. That is what will make you money. That you will have to test. I'd recommend using MetaTrader because you won't have to spend money (most other packages with the same capabilities are quite expensive).

If you don't know how to use MetaTrader, go to forex-tsd.com. They are free tutorials on how it works and how to learn it.

Do you want to learn more about how I trade? I have just completed my brand new guide, “Forex Trading - What Finally Worked For Me".

Download it free here: Forex Trading

Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide

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