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The only way you have winning trades if somebody else is having a losing trade. Traders need to make sure they test their trading system and read their charts. This is the only way to make consistent profits. Most traders when it comes to charting and technical analysis, traders will use indicators to help them trade. Indicators are actually a great charting tool when used correctly for stock and forex trading systems. The problem is that traders will take every buy and sell signal the chart indicator shows and this is not the thing you want to do. Stock and forex traders who take each buy and sell signal the chart and indicators show are likely to lose their trading money fast. It is not that the indicators are doing anything wrong. You need to use them in step with proper trend lines and the proper foundation based buys and sells in the volume. Trend following in the different markets will help you make more profitable trades. If you don't even have a feel for market trends a trader should not make the trade to begin with. Remember the range bound markets will have a short trend. This type of trend is very difficult to trade. Many new traders have losses during ranges, because traders try to force trades fighting the trend and buying or selling every time the market looks like it is changing the trend, they end up being stopped out from the chop in the channel or range. Trending markets are much safer to trade as there is a clear direction one way or the other and setups on these kinds of markets tend to offer the highest winning trades for less risk of your trading account. Forex Markets they tend to create much better trends in pair action than stocks, this is because the forex market is so large and is fundamentally driven by news data from nations and continents. This allows the trend traders to make better trades as they stay with the trending pairs in the currency markets. It is always safer to go with the trend than to fight it and use a trailing stop.This is true for up trends and down trends. Stock and forex traders need to use moving averages as a indicator on their charts. Traders can keep track of the average price of an fx pair or stock over a longer period of time. You can use a 20 day Moving Average will take the current price bar and the 19 bars preceding it and work out the average price over that set period of time. The longer time from you use the less risky the trade will be if you are trading over a long tome frame. Moving Averages can also confirm the trend. If the lines are sloping down with price, this can show that the current price itself below average, or falling. When current price is below both the 200 and 50 period which will show a down trend. They can also show a break in the trend if they are crossing over or hooking up. Traders can set their stop accordingly if they see the MA's changing trend and moving against the trade.Stock and Forex Trading web site
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