- Technical Analysis
- Fundamental Analysis
Technical analysis has to do with patterns (based on past statistical data) that shows the continuation or reversal of a trend while the fundermental Analysis has to do with economic forces such as the news.
With this said, so many have fallen into the trap that if you have a strong understanding on the technical and fundermental principles of the market they are bound to make money As discussed in this thread
http://www.forexfactory.com/showthread.php?t=57639
you may have the Mega - strategy but if you don't know what i am about to tell you, you will just be another frustrated trader trying one system to another and then buying that EA for a couple of hundred dollars and still not getting results.
SO WHAT'S THE SECRET?
I will not tell you yet. I will tell you what really controls the forex market.
HUMAN EMOTION/PSYCHOLOGY
This is the driving power behind the forex market. The price of any commodity doesn't depend on the cost of raw materials but the consumer's perception of the value of that commodity.
Some Economic Analyst are of the opinion that Greed and market sentiments drives prices up and down.
(References;
http://todaystockmarket.info/secret3/
http://investorshub.advfn.com/boards...e_id=61575136#
http://www.fortunewatch.com/handling...-in-investing/
This partially explains why you hear the phrase "THE BULLS ARE TAKING OVER" or "THE BEARS ARE TAKING OVER".
BULLS: This simply means that majority of the traders are perceiving that the market will go up so they buy. the more the buy the more the market price drives up. the inverse happens for a bearish market.
NOW HERE IS THE MAGIC PHRASE
"Make your Greed recede
and you will succeed Indeed"
'Quote Adewumi Gideon
THATS IT!!!
That is the secret so many experts wont tell.
Why is it a secret?
Because it's what many people neglect, perharps because they dont want to see themselves as been greedy.
What does that mean?
It clearly spells out three words
- CONTENTMENT
- DISCIPLINE
- ORGANISATION
- They are contented with their systems and try to make it work and master the up and downs of it.
- Most Forex Experts are disciplined they set their target and once the achieve it they don't go for more no matter how bright the market can be.
- They are very organized and keep daily logs or journal of every trade or setup the make.
Reference:
http://www.earningmoneyonlinearticle...-fundamentals/
Someone out there might probably be saying by now that if I know all this why am I not topping Warren Buffet by now?
The answer is simple
"It takes a Great mind to conceive but takes a mastermind to Achieve." (Gideon Adewumi)
In order words, I am working towards mastering my emotions. If I can control that I can "command" the market to go in my favour and make pips drip into my bank account
Thanks for lending me your hears
one may ask,
So what you saying in essence. None of this sounds new to me;
'its simple experts dont neglect what know but neglect
"..the diligent man will get precious wealth (Proverbs 12:27; RSV)."