Actually fx trading is kind of confusing in the sense that there are literally 100s of trading systems and methods you can see it right here and even more in the commercial section. Each trading method can be considered as a system by itself that is if you are using that system you won't be following another system and here lies the problem. I believe most systems here are technical that is they follow rules most of us would know. enter when price does something put TP important points in the chart typically when it's say a support/resistance lvl, put SL at the last open/close of the earlier candle. Trade off fib lvls etc etc.
In the first place what we were thought in school doesn't apply in fx trading and also the amount of time taken to learn something on fx doesn't mean it will work and it's made worse when teachers of various systems nit pick using price lvls that conform to what they teach while ignoring other price lvls that don't. What you see is total confusion especially by newbies.
In school you were taught say 1+1 = 2 or 2x3 = 6 for example. There isn't such a thing as 1+1 might be 2 or lower than 2, 1+1 is 2 period. Same with division and mulitplication systems. You take that same mentality with you into fx trading with all those fancy tools and you find it doesn't work.
One example fib retracements. So you draw a fib retracement from the highest to the lowest point. Well to be honest i seriously doubt price actually hits those particalr lvls like 68, 50, 23 etc most of the time price overshoots them and then suddenly just blows right through them.
It's made even more confusing when many trading methods especially technical ones say you don't need to follow the news aka fundamental trading. OK that's fine. Until important news event comes on say the ECB thing today and what happens? Price just simply blasts through old support and resistance lvls which totally goes against the trading method taught. Then when you question it some ppl will claim oh you didn't know today there was some big news event and you are thinking well i wasn't told to look at these news events. You see the problem here?
Actually i believe many fx trading methods teach a trader to look only at one aspect of trading while ignoring others and then when he loses he gets blamed for not having enough experience, not having proper money management etc.
I think currently fx trading is something like say the egyptians using mouldy bread to heal wounds. Bread that went moudly produced anti biotics and they helped to kill harmful bacteria. Ancient egyptians didn't know about that. All they knew was that moudly bread placed on wounds made the injuries heal faster they couldn't see the entire picture.
In the first place what we were thought in school doesn't apply in fx trading and also the amount of time taken to learn something on fx doesn't mean it will work and it's made worse when teachers of various systems nit pick using price lvls that conform to what they teach while ignoring other price lvls that don't. What you see is total confusion especially by newbies.
In school you were taught say 1+1 = 2 or 2x3 = 6 for example. There isn't such a thing as 1+1 might be 2 or lower than 2, 1+1 is 2 period. Same with division and mulitplication systems. You take that same mentality with you into fx trading with all those fancy tools and you find it doesn't work.
One example fib retracements. So you draw a fib retracement from the highest to the lowest point. Well to be honest i seriously doubt price actually hits those particalr lvls like 68, 50, 23 etc most of the time price overshoots them and then suddenly just blows right through them.
It's made even more confusing when many trading methods especially technical ones say you don't need to follow the news aka fundamental trading. OK that's fine. Until important news event comes on say the ECB thing today and what happens? Price just simply blasts through old support and resistance lvls which totally goes against the trading method taught. Then when you question it some ppl will claim oh you didn't know today there was some big news event and you are thinking well i wasn't told to look at these news events. You see the problem here?
Actually i believe many fx trading methods teach a trader to look only at one aspect of trading while ignoring others and then when he loses he gets blamed for not having enough experience, not having proper money management etc.
I think currently fx trading is something like say the egyptians using mouldy bread to heal wounds. Bread that went moudly produced anti biotics and they helped to kill harmful bacteria. Ancient egyptians didn't know about that. All they knew was that moudly bread placed on wounds made the injuries heal faster they couldn't see the entire picture.