Best Forex Indicators - 2 Popular Indicators Fatal and Mistakes That Most Traders Make
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.
Related Tags: trading, currency trading, forex trading, forex, online trading, moving averages, pivot points
5 FREE Trader PDF's Much More
Get all the support you need to trade like a
pro with our user-friendly multi-lingual online trading platforms
up to date financial news, free demo account, $100 minimum investment, tight pip spreads, and 24-hour professional support.
Grab your FREE PDF's NOW:
http://www.bestonlineforexbroker.com
Recent articles in this category:
- Sbi Best Sip Plans 2010
SBI Mutual funds have introduced many mutual schemes. Each scheme has different limitations. SBI SIP - Icici Sip Plans 2010 - Best Sip Plans
ICICI Prudential offers many schemes. These fund schemes have SIP. What is SIP? SIP's expansion is S - Determining Where To Invest Money
There are several kinds of investments, also you will find numerous factors to find out where to inv - Retirement Plans A Necessity Of Life
A person works whole life to give a decent upbringing to his children and families. But while improv - Stock Market Timing Signals
Follow the PlanThis would seem a statement of common sense, but the fact of stock market timing sign - A Selection Of Financial And Investment Strategy Guidelines For Turning A Profit
Yet, we don't often have the money to leave work right at this moment. We need a constant salary to - Find Out The Profitable Way To Invest In Small Cap Stocks
Everyone wants to find a penny stocks list or other investment strategies that can turn your literal - Portfolio #4 - Watergate
IntroductionThe problem is not that the world is running out of water. No, the problem is that drink - Dulton Group: Information Content Of Dividends
Dulton Group helps you to analyze the information content of dividends, an important factor affectin - Coping With Fear In A Markets
The real fact is that all traders, investors as well as stock market investors, who feel afraid, occ
Most viewed articles in this category:
- Investor Stress: A New Approach
George Muzea is both an investor and a stock market advisor. In any given month, he will be paid $10 - Real Estate Investment Financing
1. Location: Your real estate investment's location is arguably the most important component of your - Canadian Oil Sands - Who Are the Major Players
The Canadian oil sands represent one of the most lucrative investment opportunities to oil and gas i - Why Bulk Preconstruction?
Bulk preconstruction is the latest trend in secure, high profit real estate investing. By buying wit - Investing - It Is Not As Scary As You Think
Many people want to have more money - OK everyone does. However, most people don't know how to go a - How Do I Know Which Programs Are Scams?
Although it is virtually impossible to tell if a HYIP is a scam until the moment when they stop payi - Currency Trading Success - 6 Tips to Increase your Profits
If you want to increase your profit potential and achieve currency trading success then the simple t - The Business Cycle
Investors who want to beat the market should be followers of the business cycle. The business cycle - Pros and Cons of Real Estate
Like any other profession, there are good and bad things about what are available. Each of the thin - The Fixer Upper
Real estate investing has become almost a national pastime. Millions are made every year on the buyi
