 |
"Listen to a Sample cut of I'm Breaking Out!" From my Latest Christian Music CD! |
Home > Guest Articles
| A True Evaluation Of John Templeton's Trading In The Buff Foreign Exchange Course John Templeton, who has been an investor in forex day trading for more than five years and who is the author of the Trading in the Buff forex signal system, soon discovered that all the complex methods that traders use to pick a profitable forex trade were only muddying the field for him. "I was basically just an inanimate object waiting for haphazard lines to cross, signaling me that I should open or close a trade. Then it dawned on me. How in the world could I make a profit trading currency exchange, if I don't even apprehend what I am looking at?" This is when John decided to take the bull by the horns and to reason things out for himself. No more buying into this or that forex coaching theory. He started by absorbing what all the pro traders had to say on the subject. And more than any other slogan that came out of their mouths was the phrase "price action." John was so aghast at himself that he could have kicked himself. "It was so obvious, I couldn't believe it." When it comes to trading the foreign currency market, John realized that the trader has to make a decision between one of two ways to analyze the trade: either by using fundamental analysis or using technical analysis. Fundamental analysis takes into consideration all the psychological fundamentals that can influence a currency's tendency in the market. Things like the effect that the non-farm payroll numbers that are released once a month can influence the market, or how raising or lowering interest rates can effect a given currency pair. When it comes to using technical analysis, this kind of trader thinks that opening up the indicator menu on their charting platform will somehow or other show them which currency pairs to trade based on how the indicators read. From John's point of view these traders seem to think that -- rather than knowing price movement -- adhering to charts permeated with lagging indicators such as RSI, MACD, and stochastics will lead them to the right trade to enter. After enduring years of losing trades following this same formula, John is persuaded that following this path is a losing cause. The one technical indicator that most unsuccessful modern traders don't utilize is price action. They're all waiting for all their other indicators to fall in line. For this kind of trader, the only significant thing is what his static indicators are showing him, and price becomes secondary or even irrelevant. The only thing wrong with using lagging indicators like these is that they do not provide the trader a clear vision of what the market is essentially doing during a given trading period. When, for example, you teach yourself to begin contemplating price support and resistance levels, you are seeing actual statistics which are having an impact on the movement of the market. No lagging indicator will ever give you that kind of information which will hold up for very long. You have to be able to see it instantly from the market itself. This is what John is endeavoring to hammer home in his forex trading program Trading in the Buff. The name of his program refers to the removing of indicator based strategies and returning to fundamental price action indication. Put another way, trading in the buff, without using the theoretical indicator window dressing that many traders are taught to base their trading habits on. The theories sound good, but they don't necessarily work. Related Articles
Useful Resources |
