Differences Between Forex Analysts And Traders – Often traders are talking with their friends saying the price for the EUR/USD pair can reach 1.2398 or GBP/JPY is heading to 123.65. There are other traders who say that prices will tend to sideway, or there are others who say that there is a consolidation. Well, this event is a picture of you as an analyst, not a trader. Then, what if you want to become a trader?
Many people predict using both technical analysis and fundamental analysis about a particular pair. The price will be expected to rise by a number of points, Take Profit (TP) and Stop Loss (SL) are given at that price, and get an overview of today’s trend movement, whether up or down. This is actually the job of an analyst, who is paid to predict and forecast market movements. But you don’t need to make such an analysis, because your job is not as an analyst but as a trader.
As a trader, you don’t need to make an analysis like an analyst does. All you have to do is study and observe price movements on the chart and analyze it yourself. Focus on your analysis, follow from the rules of your system, and grow profits from your account balance. That’s all.
If you really want to be a trader, forget thinking like an analyst. A trader will never know where the price will move in the next 1 minute. On the other hand, the analyst is able to predict with confidence that the price will soon enter the price of 1.2345 or to 2.3456. What is more important for a trader is how to develop the money you have collected from trading profits, so that you can multiply it little by little.
Facts and Opinions
Caution in factor trader analysis with the analysis of an analyst is very different. You analyze the price using your own money as collateral, whereas an analyst will not bear the loss if the analysis goes wrong. The biggest disadvantage may be credibility, but for a trader misanalysis also results in real losses.
When you have a toothache, you try to feel, pay attention, and find a solution so that the toothache you experience gets better soon. However, when someone else examines your aching tooth, they can only estimate the cause, predict how long it will take for your pain to heal, and recommend a particular treatment, without taking the pain yourself if the prediction is wrong.
In looking at prices, a trader does not need to predict next week’s EUR/USD will skyrocket up or down sharply, or predict the market in the European session will form a double top or hammer. You just need to see the facts as they are in the market. Never confuse the prices you see today with the information provided by analysts. Because what is happening now is a fact, while what analysts give is an opinion that can be used to help your analysis. Besides that, they will also not bear the loss that you experience.
Analysts can only predict price in the future, but does not guarantee the error of the analysis. Meanwhile, traders in predicting only react to current prices and cannot identify prices in the future. Therefore, do not be confused by the diverse opinions of analysts. Implement your own strategy as a trader appropriately using analyst opinion as consideration only. You also don’t need to try to guess what the price will be in the next two months or even next year, because you are not an analyst, but a trader.