Like most of you, when I first started to learn about forex trading and how to make it in this business my first source of information was the Internet. When I began to learn how to trade the Internet was already flooded with millions of pages with information about trading and dozens of forums with hundreds of posts telling me what I should be doing and how I should be doing it. However after a lot of years have passed I can tell you that this initial "online education" was more detrimental to me and my trading than what it was positive. If I hadn't had access to online learning sources I would have probably started being profitable much earlier. On today's post I will share with you the reasons why I think most online sources are destructive, why they turn out this way and what you can actually do to filter your online learning so that you keep the best and eliminate all of the things out there that are simply misguiding you and probably making your trading far worse.
I called this post the IMO (In My Opinion) problem precisely because one of the biggest problems in online learning is the fact that the credibility and reliability of the sources cannot be verified. For example, thousands of people post on forums and everything is done in an "IMO" manner. People give their opinions - usually without any form of support - leading you to believe something is true which probably is not. The problem here is not that people want to learn and share but the problem comes down to the fact that there are no hard facts behind what people are saying.
I remember that when I was starting I was a fan of some of the most popular forex forums online (now at least, back then they were beginning) and people used to tell me different things all the time that would be confusing to me . For example, other users would tell me "use an ADX to filter ranging markets" but there was no hard evidence behind this. People never showed me any system that showed an improvement when this was done with statistically convincing evidence (like a simulation of some sort) or a real track record that showed that this was indeed the case. The reason behind all of these suggestions is usually the very limited experience of the users and the excuse behind it is usually given as "IMO".
New traders are very vulnerable to what they are told - since they have no experience of their own - and therefore they are prone to believe whatever people who might appear more experienced tell them. Anyone could start a forum post, a blog or a website saying that they know how to do things and that they have the experience but finally what helps you learn is not opinion but hard facts and evidence. When you are learning to trade, you have to bear in mind that "IMO" is not good enough and that everything someone tells you needs to be backed up by some form of tangible and measurable evidence.
This is the reason why most online learning sources were detrimental to my learning, I was exposed to a lot of "IMO" and I attempted to try everything since I couldn't actually know the real experience or profitability of the people behind the wheels and there was almost never evidence showing that there was some substance behind the suggestions and reasoning being made. For this reason I developed what I have heard people call a "scientific approach" to trading, which means that I take decisions and use systems and tactics based solely on evidence and not on anyone's opinion (not even my own). I finally found that this was the only approach that worked for me since results were tangible, measurable and verifiable by anyone else. At last I found a way in which I could learn how to trade that was not subjective.
My advice to you then is to put a LOT of focus into the actual evidence presented around what people say and to only follow advice - if there is any evidence presented - after you do your own analysis and make your own conclusions from what is being shown. If somebody tells you, do this or do that "IMO", you should just ignore it and focus on advice which is not based simply on mere opinion but on track records, analysis, understanding, etc. Having objective advice, based on actual evidence is invaluable and something which would have boosted my learning process incredibly. I am also not asking you to take this advice blindly (which would be contradictory) but I encourage you to give both approaches one month and see which one better improves your trading. For me, after years of spending time learning in a disorganized online environment a focused, objective and evidence-based approach finally worked.
If you would like to learn more about my journey in automated trading and how you too can learn to use and understand automated trading systems through an evidence-based method please consider joining Asirikuy.com, a website filled with educational videos, trading systems, development and a sound, honest and transparent approach to trading systems. I hope you enjoyed this article ! :o)