Trading veteran and G7FX founder Neerav Vadera also known by some in the industry as NV is taking a somewhat controversial position on technical analysis.
With more than 16 years of trading experience and having worked in London at Barclays Investment Bank, Neerav is urging traders to avoid basing their decisions on technical analysis.
Having worked on the centre of one of the largest trading floors within the institutional investing landscape, Neerav has established himself as the only 100% audited Pro trader on social media and a trainer and coach for upcoming traders. But one of his key positions goes against the traditional view regarding technical analysis.
According to the G7FX trading platform founder, technical analysis is not used by some of the most profitable institutions. The reasoning for this is based on specific trading techniques implemented in the institutional investing space, which is up for debate.
Neerav highlights the fundamental flaws of the “Fibonacci Strategy” which Neeravsays is used wrongly as a way to measure upcoming market movements. This type of analysis, which is widely adopted, is particularly flawed and should be replaced with orderflow, a much more important factor for traders to consider as it represents a much truer picture of the positioning of institutions, and decisions on future trades.
As part of his new training programme through the G7FX trading platform, Neerav is bringing his insights into real world dynamics to students that would otherwise not see these fundamentals being applied. Many traders often miss the institutional insights because they have not come from that background and are seeking to make careers as private traders – a perfectly viable path that has helped many thousands of traders find success.
A closer look at technical analysis in trading and what’s wrong with the “Fibonacci Strategy”
So what are the issues associated with technical analysis using this method? According to Neerav, the problem lies in how the markets move. And traditional technical analysis in a trading context misses some of the key fundamentals that have a wider impact on trade.
“This technique relies on using Fibonacci retracement levels to calculate upcoming market movements. The issue here is that it doesn’t take into consideration what actually makes the market move: supply and demand. If you look at any financial market, small or large, the cause of movement is always supply and demand for that particular asset,” says Neerav.
In the technical analysis framework, there is a mindset associated with how people buy and sell assets at specific times which is very random. This is not at all aligned with the volume of buyers and sellers at a particular moment, which can change abruptly with different dynamics in the works.
For Neerav, the Fibonacci sequence is not relevant to markets because of external factors that are key in driving real world price fluctuations.
Teaching new traders a different perspective
After studying and practicing trading within the institutional environment and as a private trader, Neerav is seeking to shed light on some of the flaws of traditional training programmes and mindsets.
Orderflow is one of the key determining factors that is often overlooked within the industry, which he seeks to address in his online programme, while looking at the fundamentals within his Foundation and Pro courses on offer today.
While there are always market fluctuations and price volatility, traders also have to consider their investing habits, and look at the way trades are made as well as what market events are going to impact their profitability down the line.
In the highly complex and integrated financial landscape there remain numerous events that can quickly hurt or help a trader’s particular position, but it’s not always easy to foretell or see when risks are increasing within a specific market.
For beginner traders, this skillset is often overlooked because it doesn’t come as second nature, which the Foundation course aims to provide in-depth guidance on.
After seeing large market fluctuations, and trading through several global recessions, the G7FX founder and private trader wants to help newcomers as well as established pros navigate a wide variety of factors.
The problem for private traders
Having touched on orderflow and its importance in the trading environment, Neerav also comments on how important it is to see how global events affect real buyers and sellers in the market.
“When you look at a typical retail trading platform, you are only able to see some of the data, while large-scale institutions have the tools to see far more. This means you’re unable to access crucial information that would let you make decisions,” notes Neerav.
Many private traders are also often unaware of the data that is available to them, which they can have access to as well.
“It shocks me that more people aren’t aware of this. Trading without these tools is like riding a bike with a blindfold on. You may have even felt like this before when trading,” Neerav points out.
While the problem of analysis and tools can be resolved for traders by learning the right methods of acquiring market data, the key challenge often lies in how to interpret the information.
Developing education for traders
Neerav has designed his course in order to give traders a perspective of not just the market dynamics, but also how to analyse the data available and quantify what’s actually happening in the market at any given time, and to even look at future market trends that are emerging.
“What you learn from institutional trading tools is useless if you don’t know how to interpret that data and make profitable decisions based on it.”
With The G7FX Foundation and Pro courses covering extensively the financial landscape, traders will be able to get market leading insights that will enable them to make more concise investment decisions. As part of the course, traders are also encouraged to use simulated money in order to practice before applying skills learned into a real world context.
For those seeking to harness their trading abilities, the new programmes provided by G7FX distinguishes itself by teaching new traders as well as established pros institutional teachings as well as those from the viewpoint of a private investor – a rare combination of two worlds.
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Financial disclaimer: Financial trading, including the use of leveraged products is extremely risky & can result in losses that exceed your initial deposit. Suitable advice should be obtained before commencing trading in the financial markets.