Best Forex Indicators - 2 Popular Indicators and Fatal Mistakes Most Traders Make

By kelly Price

Many traders like to use pivot points and moving averages but make fatal mistakes and don’t use them correctly, which ensures the indicators which can help their profitability actually causes them losses.

If you are using these indicators or thinking of using them, then learn now to use them correctly.

Here are some tips that will help you use these indicators correctly.

1. Don’t use them on meaningless data

More traders than ever are day trading and their losing.

The reason why is simple the time frame is to short and all volatility in daily periods is random and therefore NO technical indicator will give you any advantage, pivot points, moving averages, or any other indicator can help you make profits.

Ever seen a day trading vendor who has real time track record of profits?

You won’t!

Because it doesn’t work, volatility can and does, go anywhere in a day and traders lose – it’s as simple as that.

2. You can’t time entries with them!

Moving averages define the longer term trend; pivot points indicate points of rotation by definition, so they are telling you where prices may find support or resistance - nothing more.

Many traders like to simply wait for prices to reach the levels and enter their trades and then hope prices turn in the direction they anticipating, but if you rely on “hope” you will lose.

Never trade on “hope” trade with the odds in your favour.

This means when prices move towards the price levels you are looking at, you need to get the odds in your favour and that means combining them with momentum indicators to time your trading signals with the risk to reward I your favour.

You need evidence that price momentum is indicating the levels will hold.

If for example, prices move to support and price momentum turns up, you have the odds in your favour that support will hold and you can execute your trading signals.

Good momentum indicators are ones such as, the stochastic and Relative Strength Index (RSI) and if used with pivot points or moving averages, you have a powerful combination.

It’s all about combining indicators for profit – no indicator works on its own, so you need indicators that complement each other.

THE Biggest Mistake any Trader Can Make.

Is to try and “predict” market direction. Most day traders do this as standard and most people who use pivot points and moving averages, who try and execute trading signals with them are doing the same.

You can’t predict turning points so don’t try – act on confirmation and you will increase your odds of success dramatically.

Keep in mind trading is an odds game not a game of guessing, hoping or predicting – if you remember that and use it to your advantage you can avoid a fatal mistake most forex traders make.

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My succesful steps ( or forex trading course for newbie trader)

By Tom Johnson

Hello newbie traders! I am also a young forex trader but have my own forex strategy. It is not strategy of a forex professional, but the strategy that I use to get money from FX every month. Each of us wants know the best way to be a successful forex trader. I think the best way is to study yourself and get experience. There are many web sites with free articles, different seminars, forums which can help you develop your own system. Read, read and read. In this instance my bible is “Technical Analysis of the Financial markets by John J. Murphy”. Own system … it is GREAT ! But in reality your own system is a period of hard work within a year or more. I also work under it, but all interesting is always here – CURRENTLY, not in the future! That’s why I prefer make money when I create my own system. When I started at forex I had been trading demo account for 3 months. This period of my work is a period when we accumulate trading information - buying books, going to seminars and researching. I graduated I-Trade FX. But before doing that, I would like to be able to learn everything I can from free sources like this great forum – MoneyTec. I have been browsing this forum for the 2-3 months (read today also ) and just taking great knowledge and experience from forex traders! Most of my favorite forex links I see at the simple forex directory AllForForex. The next step is to be careful and to get money. I use forex trading signals and forecasts. In my opinion forex forecasts is a very good service for a newbie trader. You can receive forex signals with entry point, stop loss and take profit levels. Some good sites that sell forex signals are FXUniversal(their DashBoard FX is an ideal solution for those who do not have time or experience to analyze effectively the market within 24 hours a day or 6 days a week), FXMaster. I prefer FinRise’s forex trading signals free of charge . I see them by their long term results. Now, I follow their signals with half of my account balance and I trade the rest myself. I have found them to be an open and honest signal provider. Want to know why ? That’s why – below is my statement for October/November 2005 (each position was opened by signals from FinRise): Statement available here http://forex-trading-your-online-future.blogspot.com/ As you can see, it is an honest service with loses , but real profit at the end is inevitable! FinRise helps me to control and to correct my own forex trading system. Using their signals – I see how to trade today, and if my system says me “sell” , but FinRise says “buy”– I just do not trade :), and correct my system if necessary –when the next day I see – who was right. I wish you to create your own profitable forex system, but your desire to make money right now must live ! Use my successful steps for your way to gain profit at the forex market! At the end please read and remember these simple famous rules which a forex trader must know! 1. Always trade with the trend. 2. Never risk more than 5-10% of your trading capital in a single trade. 3. Never trade without protective stops. 4. Never let a profit run into a loss. 5. When you in doubt, get out. Do not get in when in doubt. Newbie forex trader. Tom S.

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