How to Learn Forex Basics Wisely

In order to learn forex basics wisely, traders should not rush and should identify the objectives. The purpose of learning these basics is to be able to see market movements and trades in greater depth. It’s not about passing exams, or impressing others. New traders should not make assumptions that other traders and mentors know all about the markets. Or that their knowledge cannot be challenged. It is very commons for traders and mentors who learned mechanically, to make mistakes. And to offer parts of false, ambiguous education in their teachings. So beginner traders should not be afraid to ask questions about obvious things. Because upon scrutiny even the obvious can get very complicated. And it’s not about knowing all the different foreign exchange currency symbols well. Nor is it about memorizing some ridiculous, often false theory for trading the market news. Productive learning is about challenging the teacher, and asking difficult questions. Because to learn forex basics wisely, one has to start questioning all established opinions. This will help you as a trader not fall into the trap of using false indicators. Indicators that are made available on charting software due to popular demand. But these indicators have not logic and no proof whatsoever that they actually work at all. For example, there is no evidence that Fibonacci theory works in trading. There is no evidence that trading volume works either, at least not in the classic sense. The classic idea is that rising trading volume is supportive of market trends, but there is another theory, which is just as successful, which works the other way around. Lazy learners can fall into false assumptions very easily and develop confirmation bias. This will make them fail later on, in live trading, because many indicators simply don’t work. In order for an indicator to really work, it has to pass the random chance test, and it must outperform the predictive power of a coin toss. If it doesn’t, then it’s not a good indicator. If confirmation bias takes over, then even flipping a coin will seem as a market indicator which works.

Learn Forex Basics and Question the Obvious

Traders can learn forex basics, everything from definitions to market structure. This will allow them, to choose more suitable currencies to trade, and to trade them with more confidence and less wishful thinking. The idea of trading online made easy is only possible through wise learning and hard preparation. Also reading some day trading forex live review reports and opinions, by real traders. These can help you evaluate various indicators and trading methods. Some of these traders are veterans, and will know a thing or two, about what worked for them and what didn’t. Especially those who traded actively, will definitely know which indicators and methods are good, and which ones are not so good. Wise traders, veterans and newer ones alike, are willing to accept that they were wrong, and change their opinion. Just as long as there is sufficient evidence. Educators on the other hand, are less likely to change their minds about a conviction they might have. They will simply argue that they had many satisfied students who are happy with their course and the concepts taught. But as always, public opinion does not constitute real evidence. Especially when someone pays a lot of money to attend a training course. The very act of paying all that money does create confirmation bias in their mind. As consumers, we all think we are smarter than the other person, and that our decisions are better, but this is not true. There is always a wiser person out there.