Best Forex Indicators

This week I got a few emails and though I did not want to post today as I want to watch the red sox beating the rockies,but I just can not help myself.

I was asked what is the worst indicator in forex trading.

It was a hard question but to be honest , all indicators are useful to a point and all indicators work if you are looking for something in particular. If you are a trader, you must be looking for something in particular. Let me give you an example, I am a man and I have been told that women love good things.However I learnt not all women love roses. Some love red roses others white roses. If I want to be hated by a woman , get her a rose or flower she does not like.If you want to be broke , then get a trading indicator at the wrong time.

Trading is a game and a very serious game that can make you broke.Take it as a business and you will not be disappointed.. If you use trending indicators during news releases, you will regret it. If you use scalping indicators during a trend, you might never trade again.

The biggest problem as a trader is trying to figure out if the market is trending or choppy. Your bigger problem is getting an education to learn what the difference is. There are many tools you can use. One of them is seasonal trading, another is fundamental trading, another is technical trading but the most important is your mind.

A traders mind should understand that trading gurus are a dime a dozen and trading gurus believe in the forex holy grail.The trading holy grail might exist but since I have not seen it, I can only do myself a favor by learning and reading as much as I can.

Get yourself in a position where you can look at a forex chart and know that the market is choppy. Get yourself in a position where you hear that payrolls are down this month and instead of selling you buy because yesterday you heard that new home sales went up. In other words get yourself in a position to succeed. The best indicator is yourself and your education.

My worst forex indicators are listed below.

1. Forex Volume Indicators

If there is no central market in forex so how can anyone know the volume? For me anyone who talks about candlesticks which are volume indicators is a forex guru, who will fleece me.There is simply no volume in forex as there is no central market so each and every indicator that uses volume is null and void.

2. Back tested Forex System

If you back test any forex system with esignal , the results are perfect, try that on Amibroker you will be very surprised then add your own broker , you will be broke.Since forex does not have a central market, what the hell are you back testing? Have you ever bought a forex metatrader system that worked 80% of the time, put it on your charts and failed miserably? The answer is very simple,it has nothing to do with your system. Every forex broker has their own data and they can do anything with it. Your metatrader system is built on strategy trader however you will trade it on North finance. It will fail miserably all the time. Though you bought a good metatrader system, your broker prices will be different and believe me brokers are not your friend.

3. Forex Gurus

There are many forex gurus I have heard off but there is only one that I trust. His name is ‘The Oracle of Omaha ‘ who predicted 2yrs ago the fall of the dollar. There are some who I will not name here but you know them but there is one who is very notorious .Forex bastards are a scam . I need to add the period. These guys have started some 3 other websites including forex secret society and they claim to have insider information. First of all having insider information is illegal and ask Martha Stewart about that fact. But the things that annoys me is seeing them trading 10 second charts. Really? That’s all I’ve got to say about that.

4. You will be a Forex Millionaire

All I’ve got to say about that is , YEAH RIGHT!

Ladies and gentlemen forex trading is not 4xmade easy , it is hard and just like any other business you have to work hard. When I started trading 7yrs ago we used to be a group of 10 ,only 2 of us are still trading. Think about that.Don’t go into forex trading with hype, take it like any other business. It will be hard, it will be tough but only the tough will remain and it is a a wonderful actually the best internet business you will ever have.