What is the main difference between the prediction and the existence of bias? More importantly, how it can affect your performance on forex trading?
Refers to the prediction predict or hope to reach a particular result. When a foreign currency outlook, you get a phone call that he would be an economic report or how to turn the pair reaction.
At the same time, the existence of bias is simply the tendency for an event that may be more likely to occur. With a bias to believe that the United States can be expected up or down, depending on how the data showed the U.S. economy.
In Forex trading, it is important to have a bias, but often traders warned against making strong speculation. When you make a prediction, and this is how you can turn off other options, except for what you expect to happen. Whenever you have an idea based on estimates only, you can hurt your pride as it appears in a different market scenario plays out.
A bias, on the other hand, is still open for confirmation. You may have a bias at the beginning of this week, based on previous themes and domination on the movement of the price, but you can leave it to confirm the data in the future. If your siding proven wrong, you can just as easily switch sides and take the reverse bias without hurting your self.
Remember that the market does not care about your own expectations. Even if I'm wrong, which are damaged due to the loss of trade, and in the market will continue to trade without looking back.
In fact, if you just keep the bias, and you keep an open mind, and let the market dictate how you trade and how you may be able to take advantage of them. With a bias towards reactionary work of forward prices.
Of course it is normal to have some predictions about how the price action will not do, because most of the analysis, as vehicles and aims to identify the foundations scenarios are most likely to occur. Do not forget all an equal amount of time to know how you manage your business or current reports of price movement look different from what you expect to spend.
At the end of the day, it is important to keep an open mind and accept that anything is possible in the forex market. Equally important is the appropriate risk management to make sure we do not lose money when it seems you have a bias error.
Refers to the prediction predict or hope to reach a particular result. When a foreign currency outlook, you get a phone call that he would be an economic report or how to turn the pair reaction.
At the same time, the existence of bias is simply the tendency for an event that may be more likely to occur. With a bias to believe that the United States can be expected up or down, depending on how the data showed the U.S. economy.
In Forex trading, it is important to have a bias, but often traders warned against making strong speculation. When you make a prediction, and this is how you can turn off other options, except for what you expect to happen. Whenever you have an idea based on estimates only, you can hurt your pride as it appears in a different market scenario plays out.
A bias, on the other hand, is still open for confirmation. You may have a bias at the beginning of this week, based on previous themes and domination on the movement of the price, but you can leave it to confirm the data in the future. If your siding proven wrong, you can just as easily switch sides and take the reverse bias without hurting your self.
Remember that the market does not care about your own expectations. Even if I'm wrong, which are damaged due to the loss of trade, and in the market will continue to trade without looking back.
In fact, if you just keep the bias, and you keep an open mind, and let the market dictate how you trade and how you may be able to take advantage of them. With a bias towards reactionary work of forward prices.
Of course it is normal to have some predictions about how the price action will not do, because most of the analysis, as vehicles and aims to identify the foundations scenarios are most likely to occur. Do not forget all an equal amount of time to know how you manage your business or current reports of price movement look different from what you expect to spend.
At the end of the day, it is important to keep an open mind and accept that anything is possible in the forex market. Equally important is the appropriate risk management to make sure we do not lose money when it seems you have a bias error.
No comments:
Post a Comment