Online Forex Trading Methods for Beginners

Online forex trading methods for beginners should be simple, and serve as a basis for gradually developing more sophisticated methods, always at relaxed pace.

Best Online Forex Trading Methods for Beginners

The best online forex trading methods for beginners, and even for classic investors turned traders, are the ones that start simple, and do not overwhelm the trader with information. The best forex trading strategies are also based on very simple, perhaps amazingly simple and basic steps. The use of too many market indicators and chart patterns is never a good idea, even for seasoned traders, because it leads to so much ambiguity and confusion that it becomes impossible to maintain a clear mindset over the trading tasks at hand. Simple trading starts with something really simple, this can be something as simple as the 10 day moving average. Or the relation between the daily close in today’s trading session and the daily closing price of one ore more days within the last 20 days. Once the trader has become comfortable trading on so simple information, they can gradually bring in more indicators, to filter out false trading signals, detect market momentum and so on. But in any case, nobody who is really a good trader ever uses all the indicators available on their charts. Trading forex can be made possible and profitable on strategies which start so simple, and where the few indicators used are well understood. There’s nothing wrong with using an indicator which is poor, as long as the limitations and shortcomings of this indicator are well known.

The Myth of Perfect Indicators in Online Forex Trading

Some indicators used in online forex trading have been mythologized as being superior or as having some kind of secret formula which predicts market price action. All seasoned traders who know very well what is forex all about, will tell you that no such indicator really exists. These indicators have been mythologized as such only because they were developed by traders who made millions in the forex market. And the crowd tends to respect and believe anything that these millionaire traders say and publish. Having made millions however doesn’t make someone right in everything that they say or believe or create. Even these indicators, deep down, perform no better than the simple, humble 10 day moving average. All these indicators come with fancy names, long reputations and huge popularity, but real life trading shows that they perform bad. And in fact, the more one believes in such indicators, the greater their trading failures are. Beginners are far better off starting with simple indicators, and assigning more weight to chart patterns such as flags and trendlines, than to off chart indicators. Off chart indicators such as RSI and MACD always have secondary importance relative to chart patterns. So when in conflict, all one has to do is ignore the off chart indicators in favor of the conflicting chart patterns.