Every beginning trader faces a bunch of problems. It usually takes a lot of time and effort to resolve them on one’s own. More often than not, these efforts fail or lead to false conclusions and delusions. Eventually, most beginning traders lose and get disappointed at Forex.
What major mistakes do most beginning traders make? How to learn to trade Forex the correct way?
Sergei Krupenin, chief instructor of ’s school for beginners, knows the right answers…
Forex ABC: Why Should Traders Learn Theory?
’s online school for beginners has been open for any potential student from any part of the globe for a couple of years. It keeps getting more popular among those who want to become successful traders, especially as it is ABSOLUTELY FREE!
Fundamental analysis is one of the key topics studied at ’s school. One of the key points is the fact that most “analysts” and “experts” working for various broking companies, dealing centers and other financial institutions are usually incompetent. More often than not, they make lame forecasts and recommendations. All the students of the school for beginners under know the reasons for this incompetency and (which is more important) learn how to make correct trading decisions and see the full picture to be able to predict changes in exchange rates.
According to , there is a combination of several distinct factors that help to anticipate price changes:
· Economic situation in certain countries
· Their stock markets as well as investment inflow/ flight of capital
· Central banks’ sentiment, interest rates, currency interventions, inflation, GDP, unemployment and other similar factors
· Constant monitoring and analysis of charts
· Defining the latest wave patterns and possible scenarios with distinct criteria in order to anticipate major trend changes
· And much more…
Why Is Recognized Europe’s Best Forex Training Project 2009-2012?
No analyst can be compared to in terms of fundamental analysis (FA). Such analysts use simplified analysis and explanation, which is valid only in 50% of the cases. They don’t even try to combine fundamental data with wave analysis, allied currencies, mid- and long-term trends and other key factors to show a comprehensive picture.
According to , their analytic reports are suitable only for facts, not for conclusions and forecasts.
Moreover, trading rumors is a sophisticated technique for skilled traders only. Beginners can easily be confused by those endless analytic reports. The biggest danger and damage to beginners is that those analysts cannot really explain why a currency pair went this or that way against their forecast. More often than not, they don’t give alternative scenarios and don’t provide distinct criteria them. They like explaining any unexpected (for them) move by the consequences of the global crisis. Another question is cui prodest (i.e. who benefits from those analytic reports and why they employ such analysts to form a misguided public opinion).
Tips For Beginners
Fundamental analysis is a powerful tool allowing you to understand what is really going on in the market. However, in order to make really efficient and comprehensive analysis of the current state of affairs, information alone is not enough. You need certain analytic skills and techniques. Those skills and techniques can be mastered through constant practice. But you also need a master to teach you those techniques.
All the instructors of the free online school under always remind their students to never blindly follow the analytics made by all those “analysts” employed by various financial institutions to misguide the crowd in their favor. Critical thinking is a key to successful trading.
We should always keep in mind that news and economic stats are not the only key factors. Fundamental factors shouldn’t be considered separately from the technical picture (mid- and long-term trends, support/resistance levels, true/false breaks etc).
There are too many aspects to describe them in a single article. Therefore, if you are interested in learning more about fundamental and technical analysis and want become a professional trader the virtual doors of ’s FREE online school are ALWAYS OPEN FOR YOU!
