It is my firm contention that if you listen or pay attention to the news in forex trading you will lose.
In recent years and with the rise of the internet there is more news that is delivered quicker than ever before, however do more traders win on forex trading than 20 years ago?
Success is dependent on something else, not economic data.
If you want to make money in forex trading you need to study something else and that something else is:
But surely supply and demand fundamentals move markets? More details please visit:-https://refresh24spa.com/ https://crownslite.net/ https://asphaltintl.com/ https://vulturekills.com/ https://the-dark-web.com/ https://sciensonews.com/ https://tazastory.com/
Yes they do to a degree, but it is humans that buy and sell and it is people who actually determine the price of anything.
If it was a simple case of studying supply and demand fundamentals a lot more traders would win, but they don’t and that’s a fact.
You need to study the fundamentals combined with human psychology to determine where prices will go.
The best way to do this is a system based upon technical analysis and a study of charts.
This method studies both together.
As economic data comes out a technical trader simply assumes that all fundamentals are instantly reflected in the price action.
But technical analysis does something more:
It studies human psychology.
Human mass behavior is constant and shows up in repetitive price patterns and reflects the emotion of the participants.
Therefore we have the following equation:
Fundamentals + Human Psychology = Price Action
A chartist by following price action will study both together and get the complete picture.
Take a recent example of how hard it is to study fundamentals in isolation.
Stock markets have tumbled around the world based on lower growth in the USA and China.
The fundamentals have been pointing to this for months.
Yet, until yesterday prices were rising.
So what help would a study of the supply and demand situation done for your trading?
You would have been selling a bull market and losing, as trader’s emotions and greed propelled prices higher.
This happens all the time in stocks, currencies or any other market.
Human psychology pushes prices to far up or down despite the news as humans respond to the emotions of hope, greed and fear.
Viewing the market from an objective point of view
A chart allows you to step back and look for repetitive price patterns caused by human psychology.
If you pay attention to the news, your emotions get sucked into your trading.
When they do, you will join the losing majority.
Act on what the price action tells you not what you see in the news or in the papers.