Forex Charts - the Deadliest Mistake you Can Make

There one error that traders make more than any other when using forex charts and technical analysis and it ensures a wipeout of equity. This article will show how to avoid it and the best way to achieve forex charting success.

The most common mistake of all is trying to predict forex prices

Why?
Because if you predict all you are doing is hoping and guessing and that's not a way to make money in any venture in life least of all forex trading. What you need to do is forget about predicting forex prices and simply confirm every trading signal via price action.

The Wrong way to Trade
Many traders simply look at a support level or resistance level and as prices approach it they buy or sell. Of course a trend in motion is more likely to continue than reverse and more often than not the level gets taken out and the trader loses their equity.

The Correct Way to Trade

You need to get some momentum indicators to help you gauge price momentum. If you don't know what momentum indicators are look them up in our other articles but good ones to start with are:

Relative Strength Index (RSI) and the stochastic

These will tell you if velocity or strength of price is strong or weak.

For example if you are waiting for a support level to hold - you wait for the above indicators to prove that it has, before executing your trading signal. Sure you miss a bit of the move - but as you don't know where the turn is going to be that's not a problem.

If you trade with confirmation, you trade with the odds on your side. Using momentum indicators for timing is essential, if you want to enjoy currency trading success.

[ForexGen Demo Accounts Contest]

Win Cash Prizes

[ForexGen] has the pleasure to announce the launching of the Demo Account contest on the first of every month.

Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com including the following information:
- Full name:
- Phone number

Also provide us with the following identification document:

" Certified copy of the information pages of account holder current valid passport or government issued photo ID"

After we receive your request we will provide you with further details and with your [demo account] login information which will be used in the trading contest.

By the end of each contest:

1. All participants that manages to open at least 20 lots will be awarded a Live Account with $50 credit
2. All participants that manages to open at least 20 lots and keep their demo account initial balance will be awarded a Live Account with $100 credit
3. The highest 5 accounts with the highest profits (including the floating P/L) will be awarded a Live Account with $250 credit.

The contest starts on the first Sunday of each month at 10 pm GMT and ends on the last Friday of that month at 10 pm GMT.

For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com