I can remember when I first started trading forex like it was yesterday. In fact, it’s been several years now. Looking back on it, I used to be completely obsessed with things like forex trading indicators. I actually spent more time on forex forums, sifting through all of the custom indicators that I could download. In fact, I think I spent more time on the forums than I did actually trading.
But I wasn’t any different than most new traders. The truth is it’s very difficult to avoid indicators when you are first starting out. They appeal so much to newbies. Indicators basically say “don’t try to figure out the market for yourself. We’ll do it for you”. As a newbie who didn’t know anything about the market, you could see why this was so appealing.
So, just like most other newbies, I completely engulfed my charts with indicators like they were going out of style. I found out the “rules” of trading them, and followed them blindly. Yes….I was that naïve. I acted as if these indicators had some mystical insight to the market.
I would demo them, and occasionally I would have some winning traders, but after it was all said and done, my demo account was crashing hard. But that wasn’t really what was bothering me the most. What got me most upset was that I felt like a puppet. I would just do what the indicators would do, and it wass contributing nothing towards my knowledge of the market.
I would sit in front of my computer screen and felt like I was playing a video game, instead of actually trading. I understand the appeal of indicators to someone starting out, but eventually you want to get to a point where you feel like you have some grasp of what’s going on.
If forex trading indicators actually worked, I could look past this, but that isn’t the case. I don’t think I have to tell you that. After all, you are probably not reading this article because you have been so successful with forex that you just needed a break from all the profitable trades.
Sadly, we all have to learn that a lot of these gadgets are useless. It’s one of the main reasons why the failure rate is so high in this industry. We’re suckered in because when you back test an indicator, it looks phenomenal, but when you trade it in real time, all of a sudden it doesn’t look so good.