In Forex trading, there are many ways to analyze the market and predict it. All the analyzing methods will come down to two basic types, either they are fundamental analysis or technical analysis. You can either use the methods individually or you can combine them to use. Fundamental analysis is a process where you take consideration to news releases and research on companies information to predict possible market movements. Technical analysis is a process where you make predictions to possible market movements by analyzing chart patterns. Advance traders uses combination of multiple indicators to predict the market value. In this article, we will concentrate on technical analysis.
There are many approaches to technical analysis for Forex trading. They can be as simple as just reading and predicting from candle sticks of the chart or to as complicated as having multiple indicators to one charts and combine the readings for trading decisions. If you ask me what the best technical analysts is so far, I would say anything that works for you is the best technical analysts. It is as simple as that yet can be very hard to achieve. People can spend months to find that very method which will work for them. Most of them even spent years finding that very method but still cannot get results. There can be many factors affecting the chance of winning while trading Forex. It could be how genuine the analysis method can be, time of trade, the discipline to follow through the trading system or the greed of winning and fear of losing for one. Any of this can be happening at the same time. At most times especially the beginners, fear of losing and greed of winning is always the main problem. When greed takes over a person, he will want the profits to be even bigger while he is winning. So he holds his position which ends up falling to the losing side eventually. When fear takes over a person, he will be holding a losing position expecting it to break even or even win. This can result in losing more money which are unrecoverable. One must be clear minded and know when to close a position and take profits and the correct time. Emotional trading is never the way.
The best technical analysts that are able to earn millions can be in your hands. But without the right mindset, these so call “best technical analysts” methods cannot perform and you can even lose money with it. So after all, it is not about the whether you have the best technical analysts on your hands or not. It is all about how patience and discipline you are in the trading ground.