With so many people looking to start trading in the Forex market these days it’s no surprise that there are so many training companies out there offering all sorts of courses and weird and wonderful trading strategies all being sold as the holy grail.
Having spoken to many retail Forex traders it has become increasingly clear that what is on offer just doesn’t cut the mustard, and has no real bearing on what really happens in the markets on a daily basis.
What I have learned is that the Institutions are hardly mentioned at all, which is a very odd thing as the Institutions account of 90% of the daily turn over in the Forex market, and with the Forex market turning over 5 Trillion dollars a day, it seems very strange that this should be the case.
Surely it stands to reason that you would want your pupils to have the best and relevant information available to them when you are teaching them, and that really you should only offer one trading course that covers all aspects of trading and not be on a mission to up sell course after course, however again this is what seems to be going on in the retail trading world.
Another thing that gets my goat are these strange trading strategies that are taught to retail Forex traders, for instance speaking to a trader recently he commented on the fact that he has a tick sheet that he has to tick off before he can take a trade. His MACD (Moving Average Convergence Divergence) must cross his RSI (Relative Strength Index) on both his 5 minute and 15 minute charts in order for him to be able to take a trade. Without trying to be a smart arse I asked him do you know what they represent, do you know what settings that you’re supposed be using, before adding that these indicators lag behind the market and will not tell you what’s really going on in the market, plus if you change time frames they give you different information, so which time frame is the correct one to use?
The point that I was trying to make was this is not how trading decisions are made at bank level , so why on earth would you want to trade that way, I am not trying to belittle anyone here but rather point out that if I had ever suggested using a strategy like this on any trading floor I would’ve been laughed out of the building and told to firmly shut the door on my way out.
It’s no wonder that so many people end up blowing trading accounts, leave trading behind and then tell their peers that trading is a mugs game. I mean if it was me I would probably end up doing the same thing, so is the pupil or teacher that is at fault here, I have to say the latter, poor teachers produce poor pupils.
I believe that anyone learning to trade in any market should really do their homework on who they learn from, are you learning from a proper market professional or are you learning from somebody that has just been through a trading course from the provider and has no real world experience, because the difference in your education will be like night and day, and the impact on your trading accounts the same.
Investing in education is the best thing that you can do, reading books, watching you tube videos and googling although free will never get you on the right path.
Lay the right foundations from the get go and watch the difference in your performance.
OK so rant over now………