How to avoid bad advice

So I've given a few good examples of how good industry-expert advice coupled with the charts can lead to some very nice profits. Now I thought it would be a good time to show you trades to avoid and when the experts might just be a bit off.

Take a look at the trade suggestion from this morning on USD/CAD

It suggests you take a long position at 1.0040 with a target of 102.35. Sounds like there good be some good potential there right? Well before you jump into the trade it's a good idea to look at the chart and see if you agree.


From the chart we can clearly see that the RSI is very high at just about 70. Looking back historically we can see that when the RSI hits 70 it quickly falls. Also looking at the MACD it just took a big jump up and is now in a place where behavior could be a bit unpredictable.

When I see a trade suggestion like this and a chart as shown above I know this is not a trade I want to be involved in. Forex trading is all about taking risks, but doing so with as much data as possible so it is a very calculated risk. You can lose a lot of money if you just follow the experts. So instead, be your own expert and make sure the trades you make not only correspond to the news and expert analysis, but also with your own common sense.