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 It is safe to follow your instincts when it comes to forex trading? This is a question that divided the world of forex in two groups. One group says that forex trading must be objective and should be based only o technical analysis.
The other group says otherwise, that a good forex trader should also trade using his instincts. Each group has its own arguments and no one knows for sure which alternative is better.
The technical analysis is very important in forex trading. An accurate and thorough market analysis is vital to any type of forex trader. The technical analysis should use the best instruments according to the type of trading (short term, long term, speculative, etc.) and is the objective part of forex. At the end of the technical analysis the trader draws some conclusions takes the appropriate decision. In this point could appear the subjectivity of the trader. He could let himself drawn by instincts and take a decision very different to the technical analysis conclusions. Some traders have strong instincts, sensing the forex market. Usually their instincts are correct and in short time they become successful traders. But most of us, the forex market and how it really works is a mystery that needs years of experience to completely solve. This is why, especially if you are a beginner trader, you shod trade based only on a thorough technical analysis. Every trader has instincts that could influence him. Is better that, at least for the first couple of months, the trader not to listen his instinct, this way being able to see the forex market movements better. In case you are not a native forex genius, you need to trade several years in order to learn how the market reacts in some situations and eventually to be able to trade more on instinct. Don’t be anxious to get there. Be patient and your hard work will definitely be rewarded. |
