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Get that Edge in Forex Trading and Be More Profitable

Forex trading has always been thought of as gambling, plain and simple, To the uneducated person and inexperienced trader, there is really is nothing more to forex trading than just that. They would argue that forex trading is really nothing more than just making a bet that the price will either go way up or shoot down on either a long term or a short term basis. They would back this up with the movement of the chart, which moves randomly, to conclude that forex trading is nothing more than just gambling.

But let's take a step back to a few years ago when forex trading was done only by the world's largest banks, central banks of several nations and other big financial institutions. Just a glimpse at the history of forex trading will tell us that this is not just simply gambling because these institutions would be the last to gamble away millions. There is something about forex trading that makes it more than just another form of gambling. In fact, as the years progressed from when forex trading first started, people have consistently made money in these markets and this opportunity has even been extended to individual traders.

But how does one get an edge in forex trading? There are many ways of course and the experienced dealers and brokers can attest to that. The edge in forex trading though starts with technical analysis. When we say technical analysis as the preliminary step to getting that edge in forex trading, what we mean is that the trader must be able learn and understand the charts and notice certain indicators that reflect trading patterns. Once the trader is able to identify these indicators, the trader will be able to determine which ones have the higher probability of return.

Still unsure how technical analysis can give one that competitive edge in forex trading? The charts that the trader is constantly watching are the same charts that are being watched by other traders around the world. They too are also watching for indicators and they await patterns that would tell them that this particular scenario has happened before. For instance, suppose the USD was supported 1.9200 four times before and it's happening again at this very moment, then more traders would be willing to take a long term position with this and it results in a very fulfilling prophecy.

A trader's edge in forex trading is really not top secret. This edge in forex trading can be learned and once it is fully understood, then one can be sure that one is a lot closer to getting profits.