{"id":90312,"date":"2016-06-02T16:45:59","date_gmt":"2016-06-02T20:45:59","guid":{"rendered":"http:\/\/countingpips.com\/?p=90312"},"modified":"2016-05-28T16:47:31","modified_gmt":"2016-05-28T20:47:31","slug":"how-to-recognise-a-forex-guru","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/06\/how-to-recognise-a-forex-guru\/","title":{"rendered":"How to recognise a Forex guru"},"content":{"rendered":"
June 2, 2016<\/div>
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By Admiral Markets<\/b><\/p>\n

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Dear Traders,<\/p>\n

Forex trading is a popular full-time or part-time job and hobby.<\/p>\n

Due to its popularity, you must be aware that there are lots of dodgy salesmen who scam for a living.<\/p>\n

A good mentor is like a good franchisor – they have been through all the problems, and have streamlined an effective system that reduces loss while maximising profit.<\/p>\n

The hardest part of becoming a successful Forex trader is getting the right education.<\/p>

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Getting off to the right start it vital.<\/p>\n

A bad start in learning to trade can have a massive psychological impact and affect the rest of your trading career.<\/p>\n

It’s also important to find the right learning resources<\/a>, fundamental data feeds and charting software<\/a>.<\/p>\n

There are six key qualities that mentoring gurus need to meet, to be deemed worthwhile.<\/p>\n

\"free<\/a><\/p>\n

Consistency in methodology and charts<\/h2>\n

You must know what information you need from a Forex guru to enable making the appropriate decision.<\/p>\n

Some teachers look only at the underlying fundamentals of the company or economy and then use a chart to determine the best time to execute the trade.<\/p>\n

Others will use pure technical analysis.<\/p>\n

But some are watching the whole picture – determining the best technical levels based on
\nboth fundamental and technical alignment<\/a>.<\/p>\n

The latter are your best choice.<\/p>\n

When you decide on a guru and their methodology, remember that they need to be three things:<\/p>\n

    \n
  1. clear<\/li>\n
  2. concise<\/li>\n
  3. consistent.<\/li>\n<\/ol>\n

    Pre-fact analysis<\/h2>\n

    In my opinion, this is the <\/em>core trait of any Forex guru or analyst.<\/p>\n

    Simply put, most traders don’t care what happened after an event, i.e. post-fact.<\/p>\n

    What matters to them is the edge.<\/p>\n

    The primary strengths of real-time, pre-fact technical analysis are efficiency, practicality and utility.<\/p>\n

    What you learn by reading accurate analysis can be used to:<\/p>\n

      \n
    1. improve the methodology of your choice; and<\/li>\n
    2. entries plus exits for any currency pairs.<\/li>\n<\/ol>\n

      Pre-fact analysis can be used across other markets and different timeframes.<\/p>\n

      Forex gurus think differently<\/h2>\n

      Sometimes, good opportunities are where no one else would expect them to be.<\/p>\n

      If you always follow the herd, your result might be the same – not good enough.<\/p>\n

      If you hear a tip that there will be a movement one way, everyone else probably heard it too:<\/p>\n

      …so you and everyone else wants to take advantage of the tip\u2026<\/p>\n

      …which will keep your trading results average at best.<\/p>\n

      If a Forex guru is suggesting you move against the herd, you should listen.<\/p>\n

      Why?<\/p>\n

      That guru has probably got a lot more experience trading and analysing the market, than you do.<\/p>\n

      It doesn’t mean you need to do exactly what your mentor says, but you can certainly watch the results of his suggestion and see how it turned.<\/p>\n

      If he’s right – you’ll know for next time and can take action.<\/p>\n

      Don’t forget:<\/p>\n

      …the key is finding situations where most of the technical signals point in the same direction.<\/p>\n

      I call it POC (Points of Confluence)<\/a>.<\/p>\n

      These high-probability POC zones are usually profitable.<\/p>\n

      Flexibility<\/h2>\n

      True Forex gurus should have confidence in their ability to see the future.<\/p>\n

      They are able to:<\/p>\n

        \n
      1. assess whether events undermine; or<\/li>\n
      2. reinforce that view; and<\/li>\n
      3. adapt to market change.<\/li>\n<\/ol>\n

        A good Forex guru will teach you to adapt to the constantly changing market.<\/p>\n

        <\/p>\n

        The markets are not the same as they were five years ago, let alone 10.<\/p>\n

        For this reason, most of the systems do not work anymore.They haven’t adapted to the current markets.<\/p>\n

        Good Forex trading gurus follow a certain methodology
        \nand<\/em> adapt it to present market conditions.<\/p>\n

        They never deviate from a good methodology unless market volatility or sentiment change comes into play.<\/p>\n

        Commit to helping other traders<\/h2>\n

        Analysing the markets the proper way is not easy, let alone if you opt to trade it.<\/p>\n

        Hours and hours of screening time are needed to efficiently analyse the market.<\/p>\n

        Most successful Forex gurus started with little or nothing in terms of trading capital:<\/p>\n

        …but they built their success\u2026<\/p>\n

        …even in the face of people telling them that it couldn’t be done.<\/p>\n

        The emotional drive of fear and greed will be life and death to most traders.<\/p>\n

        Highly successful Forex gurus understand that the market is always right, no matter what they may think.<\/p>\n

        They have respect for the market.<\/p>\n

        They are willing to share facts<\/h2>\n

        Analysis and trading is not the same.<\/p>\n

        As a matter of fact, it is a completely different field.<\/p>\n

        Analysts don’t need to think about money management, risk factor, need\/greed, emotions etc.<\/p>\n

        Traders do.<\/p>\n

        Switching your position from an analyst to a trader, is not something you see often.<\/p>\n

        I prefer to be both.<\/p>\n

        Showing
        \n        pre-fact and post-fact results<\/a>, is a must for every successful Forex guru.<\/p>\n

        When it comes to trading, an account statement is sufficient.<\/p>\n

        But for analysis – pre and post-fact snapshots are great ways to show performance.<\/p>\n

        On Twitter plus my webinars, I have been showing pre and post-fact results to keep accurate, detailed records.<\/p>\n

        Once the trade is executed, you can go back and analyse how it performed.<\/p>\n

        In the video below, you can watch how I show pre-fact and post-fact results:<\/p>\n