Quote from missyjreng:
Hi,
Does anybody know what is the best technique to make profit in forex trading ?
Someone has told me about a simple technique called "forex trapping" is it a good technique or not ?
That technique sounds like too good to be true, so I don't know its really work or not. I've a plan to try it in virtual trading first.
Also I see from a broker that if you want to become a good trader in forex, you must use and learn a lot of indicators, is it true ? (its make me very confused).
so please share your technique and also what is the best indicator to use
thanks a lot
Annie
Hey Annie,
Someone has told me about a simple technique called "forex trapping" is it a good technique or not?
It's not called "trapping," it's called
cornering, and yes, it is a viable and excellent way to make money in the forex.
It is also one of the more advanced trade/position-structuring techniques, so, as a beginner you may or may not reach the level of proficiency to use it.
Basically, it is structuring your trades so that, ultimately, moves either up or down will bring your trade/positions into profit where you snap them closed and pocket the money.
While it is a good structure it also carries a higher risk level. There are better ways to make money trading forex with less risk than cornering currencies.
Some feel George Soros, the legendary currency trader, once
cornered the silver (GBP or Great British pound) market when he "broke the bank of England."
It's nonsense. He was just lucky to be selling GBP at the time it slid down to hell. He took credit for making it happen by
speculating against the pound, making a billion dollars when he closed his now world-famous trade.
Think it over: If he could really corner the GBP, he would have done it over and over and over, becoming the richest man on earth, easily.
He later went on to
lose a billion dollars, a fact not as many realize.
Read up on it.
Also I see from a broker that if you want to become a good trader in forex, you must use and learn a lot of indicators, is it true ? (its make me very confused).
This is NOT true. In fact, the more indicators you have the more your view of the forex market is blurred or blocked.
Trading well is a bit complex but not rocket science. The simplier you make it the better you'll do.
Indicators are a can of worms you may be better off not opening.
The basis of indicators is structured in the theory that
when this happens then that will happen.
Similar to those who attempt emotional
trading in the zone techniques, users of indicators think they will somehow see the future before it happens, transforming themselves into mini-forex Nostradamuses, becoming rich in the process.
It's hokus pokus. Don't believe it.
You'd do better learning how to
react to market actions than trying to anticipate currencies' next moves.
Just work hard, study and use common sense. Be a student of the market and you'll advance.
Good luck,
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