Are there Forex trading secrets?
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In this session, we will be asking the question, are there forex trading secrets? And hopefully coming up with some answers.
The internet is awash with firms, including brokers and educational platforms, offering to teach new traders the secrets of trading forex. Such as ‘’9 secrets to successful forex trading’’ or ‘’seven-day trading secrets exposed’’ or something along the lines of ‘’the five major secrets to apply to make a killing in forex trading.’’
Some Forex educational platforms and Forex brokers will use any gimmick they can to get new traders on board to service the revolving door of new traders coming in, blowing their accounts – where statistics show that will over 75% of new traders lose their money in the first 6 months of trading – while enticing new traders in to maintain their client numbers and keep their businesses afloat.
And so back to the question, are there any secrets in forex trading? Absolutely not! This is not the Knights Templar, nor the Freemasons, or a secret society. And it is most certainly not a get rich quick scheme as some people would have you believe.
In reality, Forex is a business – the largest business on the planet – which turns over trillions of dollars 24/5. It is complex: the financial markets are interwoven with each other, where a forex exchange rate trend can turn in an instant, with no apparent reason, other than sentiment.
It is heavily correlated with fundamental reasons and political ones, where a rumour from a tweet, or a speech by a policymaker, can cause severe volatility in the markets. Where trends can change because of a certain time of day, where perhaps one country stops trading for the day and another begins.
If the market isn’t changing because of fundamental reasons, it is constantly changing because of technical ones. That’s chart patterns. Technical analysis, or the study of chart patterns, including exchange rate price action, and the implementation of technical analysis tools and indicators is pretty much the backbone of forex trading, with the upmost single important thing being where the price is at any given time, and which is also known as price action. This, on its own, is of paramount importance because it shows who’s in control of a forex pair, whether it’s the bulls or bears, or whether the market is simply consolidating and no one is effectively driving the market in any particular direction other than sideways.
If somebody offers to sell you the secret to fixing your car engine troubles, you would probably laugh and take your car to a garage. If they offered you the secret to remove your painful appendix, you would cry in horror and run off to see your doctor. Forex trading is a profession not a secret ridden gimmick. The best traders learn about fundamental analysis, technical analysis, market sentiment, market correlation, how currency pairs move and why trends are developing, and when and why they stop and reverse. And this is the real key to making money while trading Forex: knowledge. The more you learn, the more you will earn.
So, in conclusion, don’t be seduced by offers of learning secrets, when here at Forex Academy our professional traders, some ex institutional, offer a totally free educational, informative service, with its reliable signal service, supported by a broker – EagleFX – which doesn’t need gimmicks, with the idea being that if traders make money on a reliable platform, where education is absolutely free, then everyone is a winner.