The Value of Education in Online Forex Trading.

Education is a rope that can carry us to greatness. It is one of the most important things in life, because without it, you can't contribute to the world or earn money, and do not have knowledge. Knowledge is power, so when you know what you can do, you can go that mile further. This article addresses that issue and tells how to find the importance of education and what is the worth of quality education in forex trading?

Let me spell out three scenarios:

Driving from Ojodu/Berger, Lagos, the first turning on the right has a ‘NO ENTRY’ sign for motorists. A good one by the transport management authority to educate the motorists and ensure an effective traffic control, I suppose, but in the middle of that sign is  the non-conspicuous time of ‘from 4pm.’ I wonder why that important time limit will be written in such a small size font. Then, what is the essence of that road education? Punitive?

I tuned my car radio and a programme in which an official of a forex brokerage company was reeling out the importance of education in forex trading was been aired. The PR man made notable points as he stressed the importance of education in forex as the very basic step. A good one! But in my mind, I disagree with their training structure. I do not see it taking traders to their desired goal. My doubt also stems from the fact that brokers and traders might somehow be strange bed fellows. I can authoritatively confirm that an account under that broker’s PAMM scheme for two years, which yielded nothing other than a 20 per cent shortfall in investment, was doubled in six weeks under my management. The client found it incomprehensible.

Thirdly, the craze for foreign education outside Nigeria calls for serious concern economically, especially when one thinks of its effect on capital flight. From the three examples above, the first shows an attempt to educate but still something is hidden. The second points to getting your education at the right place and probably not with a ‘rival’ and the last speaks of how people seek better knowledge if affordable to them.

In relation to this article, readers have to be informed that getting a proper education now in forex trading, which removes all fear of losses, teaches proper risk and profit management, technical and fundamental trading, good trading strategies, is all they should seek. The time frame to cover all of this cannot be in short seminars of a day or few days.

Forex trading involves investment, hence the need to guide your capital. Traders go into the market as speculators to make profit. This is the ultimate aim and if that fails, discouragement sets in. From my experience on feedback since writing here, I do not encourage those who seek materials on their own to trade in forex.

Irrespective of the cost, I recommend mentoring from an experienced trader. Some that called to find the cost of training, which at present is less than $500, complained that it was expensive and I advised them to try the Online Trading Academy in St. Albans, UK or the branch in the US.

Not taking them far again, I do even ask for their permit to recommend cheaper ones around. Some take it in a bad stride as if I am haughty. But the answer is that going into forex trading in which you expect to make money, if not a living, dictates that you should shun quack training for a quality one; but the choice is yours. I would not compromise standard. I wonder why someone investing close to a million naira if not more would shun good training because of a fee that is less than 10 per cent of his or her investment.

How To Use Candlestick To Identified Short/Sell Signal Forex Market.

This article is a continuation of last week’s article. Last week, if you can grab a copy of that article, we discussed long or buy formations. This week, the focus is the opposite of that. We shall also summarise five candlestick bearish patterns and their characteristics for a sell decision or to go short.

Hanging man

The hanging man has or is characterised by a small real body, long lower shadow and short or non-existent upper shadow. The length of the lower shadow must be at least twice that of the real body.

The hanging man is a bearish reversal pattern that can also mark a top or resistance level. Forming after an advance, a hanging man signals that selling pressure is starting to increase. The low of the long lower shadow confirms that sellers pushed prices lower during the session. Even though the bulls regained their footing and drove prices higher by the finish, the appearance of selling pressure raises the yellow flag.

As with the hammer, a hanging man requires bearish confirmation before an action. Such confirmation can come as a gap down or long black candlestick on heavy volume.

Shooting star

The shooting star is a bearish reversal pattern that forms after an advance and in the star position, hence its name. A shooting star can mark a potential trend reversal or resistance level. The candlestick forms when prices gap higher on the open, advance during the session and close well off their highs. The resulting candlestick has a long upper shadow and small black or white body. After a large advance (the upper shadow), the ability of the bears to force prices down raises the yellow flag. To indicate a substantial reversal, the upper shadow should relatively be long and at least two times the length of the body. Bearish confirmation is required after the shooting star and can take the form of a gap down or long black candlestick on heavy volume.

 Bearish engulfing

  

This requires an existing or previous uptrend or ascension. The last candle before the engulfing candle must be bullish. The engulfing candle must be bearish and must ‘swallow’ the previous bullish candle in a manner that the previous candle can completely fit into it. A bearish confirmation may be required. The formation of the pattern on a higher time frame will give more potent result.

Bearish piercing

This requires an existing or previous uptrend or ascension. The last candle before the piercing candle must be bullish. The piercing candle must shoot/pierce/cover the over or at least 50 per cent of the previous candle. The piercing candle must be bearish. The piercing candle must open higher than the close of the previous candle, then close below the midpoint of the body of it. A bearish confirmation may be required. The formation of this pattern on a higher time frame will give more potent result.

 Dark cloud cover

This requires an existing or previous uptrend or ascension. The last candle before the dark cloud candle must be bullish. The next candle opens at a new high then closes below the midpoint of the body of the previous bullish candle. The formation of this pattern on a higher time frame will give more potent result.

A combination of last week and this week summary on candlestick formation could narrow your search on winning or profitable candlestick formation strategy as you now have nine strategic formations to look out for on your trading style, time frame or periodicity.