In today forex faq, I will be answering 2 questions at one go from our fellow traders.
Below are the questions:
Question 1) Am new in this so called forex biz. I received a lot of free forex indicators and even I don’t know which of the indicators to rely on. Please kindly help me out with reliable and profitable indicators which I can depend on for the trade.
I totally understand the confusion that new traders tend to face as I have went through that stage before. When I first started out, I am blast with information and indicators that I don’t have any idea how to use them.
My advice for you is to put away all the free indicators and spend your time to really learn the characteristics of useful forex indicators like the MACD, Stochastic and many others. You can get the information for these indicators simply from this website as I have written articles on them before.
One thing I want to emphasize is there is no profitable indicator as what indicator to use depends a lot on your trading strategy. Some strategy may need the help of Bollinger Bands while others need the help of RSI. Therefore you will also need to know what strategy you plan to trade with.
Do not be greedy and trade with 4 to 5 different strategies as I can guarantee you that you are going to fail badly. The key to successful trading is FOCUS, you need to decide on one trading strategy and then stick to it.
I think that the first thing you need to do is to learn one or at most two strategies that suit your trading style and time. From there, you will be taught what indicators to use for that strategy.
Question 2) I am a beginner on the trading and I don’t know how to develop trading plan. Please tell me step by step trading plan.
As for the question above, I have written an article showing you the step to developing your trading plan. You can read it here.
Trading forex requires patience and therefore perseverance is extremely important in this field.