Indicators are often used by traders as a tool to help them make trading decisions in Forex Market . These technical indicators are mathematical calculations based on historical price and volume data. While Forex indicators can be useful in some cases, they have some significant drawbacks that make them unreliable in trading.

One of the main problems with indicators is that they are lagging in nature. This means that they are based on past price movements and cannot predict future price movements accurately. As a result, traders who rely solely on indicators are often late to the game, missing out on profitable trading opportunities.

Another issue with indicators is that they can generate false signals, leading traders to make the wrong decisions. Many traders make the mistake of relying on one or two indicators and ignore other important factors, such as market sentiment or news events. This tunnel vision can lead to significant losses when the indicators fail to provide accurate signals.

Furthermore, indicators are often based on arbitrary settings, which can vary depending on the trader’s preferences or the market conditions. The use of arbitrary settings can lead to inconsistency in trading decisions, resulting in a lack of confidence in the trading strategy.

In addition, relying on trading indicators can lead to overtrading. Traders may feel compelled to enter and exit positions based on every signal generated by their indicators, leading to excessive buying and selling. This can result in increased trading fees, and the trader may miss out on potential long-term gains by selling too early.

Finally, Forex indicators can also create a false sense of security for traders. By relying solely on indicators, traders may overlook critical market factors and assume that their indicators will provide them with accurate trading signals. However, the market is unpredictable, and no indicator can predict all possible outcomes accurately.

At the Sikhnomics training session, we strongly advise against using any indicators in trading. This is due to the fact that big institutions can easily detect retail trader’s positions and cause stop-losses to trigger, resulting in substantial losses. Instead, we concentrate on teaching PRICE ACTION, which involves observing the actions of large institutions without relying on any indicators.

In conclusion, while indicators can be a useful tool in trading, they should not be relied upon solely. Traders should consider multiple factors when making trading decisions, such as market sentiment, news events, and technical analysis. Moreover, traders should be cautious when using indicators and consider their drawbacks, including lagging nature, false signals, arbitrary settings, overtrading, and a false sense of security.

              Team Sikhnomics

Dr. Kulveer Singh

View Profile

Dr. Kulveer Singh is a skilled Forex trader and holds a Doctorate in Business Management Studies. He has a talent for motivational speaking and achieving set targets. Dr. Singh's work experience includes serving as the Director of the Business Compliance department in GCC for 15 years, where he garnered extensive expertise in managing regulatory affairs in the financial industry. Dr. Singh is also an established motivational speaker who employs his knowledge to help both individuals and organizations achieve their goals. He is proficient in team building, communication, and leadership. Furthermore, Dr. Singh's passion for philanthropy has driven him to create Sikhnomics, a platform through which he shares his trading skills with underprivileged communities. In summary, Dr. Kulveer Singh is an accomplished financial professional with a vast skill set.