subject: Benefits of Technical Analysis [print this page] If you ask both statistic analyst and Forex market analyst a single question: "What is the probability of being bumped by a car walking down the street?" you will get two different answers. A statistic analyst would probably answer that this probability is very small as it happens rarely, but a Forex analyst would say it is fifty percent. The thing is that Forex trading requires absolutely different attitude to all the processes taking place, different from how we usually treat as common principles. In case you would like to trade in Forex, what you are primarily required to do is to change your way of thinking, change your attitude to what is happening. So the right answer for this question is fifty percent: a car may bump or not.
Forex analytics is not profitable. Even more, some large companies forbid their market analysts to trade financial assets in order to leave their views clear and unprejudiced. Nevertheless, every respectful brokerage firm or a dealing center very often has people in their staff, who publish their ideas on financial market with deliberate description of possible trends. It happens as this kind of activity always draws demand.
Analytic forecasts may be simple, just giving tomorrow`s price for an asset. But deliberate analytics serves as the way to show a person important support and resistance levels, trend lines, reversal points through technical or wave analysis. There is no need for you to study, why a certain rate rose sharply in spite of bad news coming from the USA. Be sure that market review professionals will always find necessary words and explain price actions on the chart.
The thing that happened will not happen again. Forex market will change next time and will respond in a different way to the same situation unlike it responded today. Thus, there is no need to concentrate on what happened and what is still to happen, concentrate on what is going on now and act as you are sure what you need to do.
Some trades do nothing but follow guru. They will not be capable to earn on the market. Technical analysis is a kind of hint to draw attention to wasted moments. Anyways, you need to assume that Forex analytics gives forecasts with the probability that has already been discussed: fifty percent. And no matter what forecasts are issued the currency would probably move into the direction opposite from desirable by majority one.
