The Forex Trader. Final Part
Traders who are using fundamental analysis.
The second group includes those who use fundamental analysis. It as it seems to me, the most difficult kind of market research which demands analytical mentality. For fundamental analysis carrying out it is required to analyze a considerable quantity of the information and the trader, in this case, acts in a role of an analyst. The basic idea of fundamental analysis is to predict influence of those or other events in the world on behavior of the price in the future. The exit of financial news, reports, natural cataclysms, catastrophic crashes and other phenomena definitely influence behavior of financial tools.
Traders using own methods of the analysis.
The third group includes those who uses own methods of the analysis, and also those who simply trade the market as in a casino, using the probability theory as the index for fulfillment of transactions in the market. Such traders simply play, thus, usually, use artful system of exhibiting of warrants and support of open positions. Often such traders use any version of Martingale (doubling of the size of the rate after loss, in hope that the prize all the same will occur sooner or later). Personally I carry myself to the third group since I use own methods of the analysis the blessing point-of-sale terminal Metatrader4 comprises huge possibilities on research of the market Forex. And even, if, in the terminal something isn’t present, it always can be programmed by means of built in programming language MQL4.
In the fourth group it is possible to carry people who trade on-intuition, without using any means of the analysis. It, as a rule, successful traders with a huge length of service, it is enough for them to look only at the price schedule to estimate that occurs in the market and how from this to get profit. But such thing it is not enough. The solution of their capability so quickly to estimate a situation in the market, is very simple – the experience acquired as a result of daily trade on financial markets. That they don’t use any kind of the analysis, actually it isn’t true, simple at them it turns out automatically or even subconsciously, owing to a trade wide experience. It is called “to feel the market”.
Division of all participants of the auctions into groups conditionally enough and subjectively because always there are those who simultaneously use some methods of the analysis of a market situation. Many, also, have a little trading simultaneously, trade systems that allows covering losses from trade on one system at the expense of profit on another.
Portrait of the trader.
The trader is, as a rule, comprehensively developed person with a wide range of interests. He always benefits even by unprofitable transactions, constantly works over himself – improves his skills. He/she is the person who constantly learns to manage the emotions and feelings, and establishes trade rules and always accurately follows them.
For those who want to participate in forex trading should start from learning the basics of this market to make sure you do not experience problems with this industry.