| There are two mainstream approaches most traders | | | | goes... |
| take when they trade the forex market. There are in | | | | Past price history does in no way guarantee present |
| essence two types of traders. The fundamental | | | | and future behavior. |
| trader and the Forex technical analysis trader. This | | | | I did not get the wording 100% correct, but it's |
| latter trader is what this article is about. | | | | meaning completely de-legitimizes technical analysis |
| While the fundamental trader typically watches the | | | | trading. Just about every technical analysis software |
| news and takes cues from world events to enter a | | | | program and even broking houses will have this type |
| trade, the technical trader believes, that by the time | | | | of disclaimer somewhere on their literature. It means, |
| news breaks and the world hears about it, all the | | | | "even through we use price analysis or are selling a |
| smart money has already made its move and the | | | | product that automatically plots entry and exit signals |
| news is always too late. This would indicate a belief | | | | based on past price behavior, we disclaim that it will |
| that there are insiders in the Forex market that take | | | | actually work at all" In other words, if this system or |
| advantage of events and their privellaged positions to | | | | software or what have you, actually lets you get a |
| profit from moving markets. I cannot confirm nor | | | | winning trade, it is primarily luck and not a result of |
| deny this belief and by all means if it was true, it | | | | our system. |
| would be a violation of FTC guidelines. | | | | This can be very disconcerting to a new trader with |
| The technical analysis trader believes whether rightly | | | | stars in their eyes. Luckily, a good system does not |
| or wrongly, that studying the actual price fluctuations | | | | have to be perfect. I have heard of a trader that |
| of the market and looking for patterns in the history | | | | uses a coin as a system. He also does the opposite |
| of that price movement, a "tech" trader can see a | | | | of what the coin says. Believe it or not, he is right 7 |
| move BEFORE events hit the headlines. However, | | | | out of 10 times using this odd approach. With that |
| there is an old traders adage, and it is virtually | | | | sort of strike rate he is raking in a fortune, but the |
| disclaimer on every trading product known to man. It | | | | point is that it works for him. |