Assessing a Trading Online Course

By Content-mgr - on April 7, 2016

A trading online course may seem to promise too much, and it may even seem to good to be true. But most traders are wise enough to detect big fake promises.

Assessing the Performance of a Trading Online Course

If a trading online course promises to introduce you to the basics of forex. And to help you learn forex trading, then there’s no reason to be suspicious. This kind of teaching is quite realistic. Since it doesn’t promise to make you a profitable trader in a few weeks time. Big promises include claims to the effect of we will teach you this and that, and you will be highly profitable soon, as to trade for a living etc. These promises cannot possibly be real, especially if the course somehow seems to guarantee these claims. Good trading courses will have basic rules, and flexible advanced trading rules. So that the trader can get away from extreme discipline and start create their own unique trading style. If the course allows for creativity at a personal level, then it may in fact be very good. However any trading online course promising quick success through the teaching of generic forex strategies. Is bound to be stretching the truth, to exaggerated claims. Generic trading strategies never worked, and never will! There are entire theories on forex trading which are wrong, and are based on false assumptions. Fibonacci theory is one of them. Many other such theories are based on oversimplified interpretations of support and resistance trendlines. While trading on forex news is another area where one will find many false ideas and methods. A good trading course shouldn’t include these methods at all.

Trading Online Course
Some traders have found methods for assessing open trades in terms of probability. Probability specific to each trade. Counting days is one such method, it is a kind of stop loss, in the time dimension. Counting a specific number of days on the above EURUSD daily chart, allows you to assess open trades. So as to either close them when the count has elapsed, or to leave them open. See how the orange arrow represents a sell trade, and the green arrow a long trade. The long trade seems mad since the market has fallen below the support trendline, but withtin few days it turns around and rises back up. More times than not, an appropriate time limit will warn you against holding an open trade any longer, before it becomes a big loser. Study the above chart, or any EURUSD daily chart, and by making hypothetical trades in the wrong direction, see what the price action tells you in the early days,  as time passes and the trade doesn’t go your way. That’s the trade-specific probability you should learn how to figure out. It’s a non generic concept, which very few courses explore.

What a Good, Advanced Trading Online Course Should Offer

A good trading online course on more advanced trading should deal with news trading and volatility. It should also deal with money management, and the use of large size stops. Especially if the objective is beyond day trading and allows for holding trades overnight. Tight stops will not work at all, so they must be avoided by all means. Some course deal with the principle of probability, for each individual trade specifically. So that the trader can assess the market, and various open trades. Assessment of probability is possible in a number of ways. It all boils down to carrying out simple tasks, such as measuring time, price, and looking out for known causes of false breakouts. There’s no need for advanced statistics, where the sample is a huge number of trades. Probability as defined by a method based on intuition, simply leads to a binary outcome. Such as either to close that open trade or to leave it open. If traders can master that concept of probability while they want to learn how to trade forex, then they will be much better. And they won’t need Fibonacci analysis or any other nonsensical theory.

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