Free Forex trading strategies abound on the internet these days, so how do you know which ones are valid and worth pursuing and which ones should be placed into the “scam” category? Well, there really is no easy answer to this question, but there are some characteristics that all effective and time-tested free Forex strategies have in common. This article will discuss some of these characteristics and will hopefully give you a better idea of what to look for in your search for the best free Forex strategy.
A good indication that the free Forex trading strategy you are considering making use of is valid and effective is whether or not it is based on classic technical analysis skills. Classic technical analysis consists of simple core trading strategies like price patterns, support and resistance, retracements, trend lines, breakouts, and other similar free Forex trading strategies. These core price chart reading skills have been used for literally hundreds of years, and there is a reason why; they work. Gaining the skills to read a raw price chart without a bunch of fancy indicators all over it is the first thing any technical trader must do if they are serious about gaining a deep understanding of price movement, and any free Forex strategy worth pursuing will be based on such skills.
That is not to say that there aren’t some free Forex trading strategies worth checking out that incorporate indicators into their approach. However, if lagging indicators are the only part of the strategy, it is best to keep looking, because you absolutely must learn how to interpret raw price dynamics on some level if you are to find success as a Forex trader. The problem is that many traders commit themselves to free Forex strategies that consist entirely of lagging indicators or computerized “robot” trading methods, such methods only work to confuse the trader and complicate the process of interpreting a price chart. This idea that technical Forex trading needs to be complicated or expensive is absolutely not true, learn Forex trading strategies that are free and based on core technical analysis principals, and you will see how cheap and simple it can be to learn to trade Forex.
Another important factor to consider in any free trading strategy is who it is taught by. If you are trying to learn a trading strategy from someone who isn’t qualified, or who you aren’t sure is qualified, your progress is likely to be quite limited and slow at best. It is very important that you qualify any person teaching you free Forex trading strategies because there are many people on the internet trying to develop a following who are not actual successful traders. When you land on most web pages for indicator based or robot based strategies you usually have no idea who is behind them. This is because these types of strategies simply don’t work and are designed to sell to people for profit. There is nothing wrong with selling a Forex strategy for money if it is actually effective, however, typically anyone selling such a Forex strategy will also offer free Forex strategies as well.
Article Source: http://EzineArticles.com/5298817