Why Most Tradesmen Use Forex in the Wrong Way and Lose

It is a fact which is today sources of news of forex are better than ever and the his delivered more quickly however report/ratio of the losers to gaining in same commercial remainders of forex as it made 50 years ago of 95% destroy and only 5% destroy. The news can be useful but you it need to know to use it. Initially let us look at a simple equation: Psychology = prices of investor of fundamental principles of forex (new of supply and demand) the facts are there for all us to see but the evaluation of the impact of the news is hard because the human ones (million them) very justified differently see the facts but they all draw their own personal conclusions from them and it is the price. If it were easy to trade by after the news then there would be much more gaining that there is really. The Rogers will has in the past indicated: the "I believe only what I see in the papers" Naturally it made a joke but I am astounded per how many tradesmen think that because a history appears on a Reuters or a different newswire, they can trade it - you cannot. The fact is that the human ones always lower the top of the prices far upwards or, because their emotions inherit the play and the majority of the principal tops are formed when the news is most obstinate and vice versa on a market of bear. It is a fact that the prices generally move in conformity with the fundamental principles in the long run but it transitory of the prices to far from the value of fair upwards or downwards along the way and from the history shows us that these transients do not last. You easily can the repèrer on a diagram of forex and to trade them for the benefit. There is a well can say: "If that you can be held on your head when each one around you is losing them, you probably did not hear the news" In the forex the trade of this means that you sit down behind isolated fashion and look at your diagrams of forex and when you see a transient of the prices you start to call into question the news. For example - the pointed euro at 1.50 recently and each one indicated that the dollar was finished - however its gathered and will gather probably further. Why? Since all the stories of news were discounted: The interest rate of interest crosses, the secondary principal crisis of mortgage, the USA will slip into recession etc. and the things can only become better and people also did not pay the attention to the GDP which is robust. The dollar simply was sold too much and gathered, when the news was to its more bear. This does not occur simply in the forex, it does not occur on any market. I read a great history about oil going with $160.00 dollars per barrel and these $100.00 a barrel were bearable. Well - there is no lack of oil. A total request really falls and the true oil value is in area $70 - 80. When people said $100 a barrel was a given up conclusion - it was time to be sold. The fact is us are not creatures of logic, are to us creatures of emotion. The human ones are also animals of package, we like to be with crowd and the news reflects this. The facts are never the victories of crowd. If you look at a forex draw up a card and you see a piece of obstinate news which does not gather a market or new bear who does not make fall a market to only says you to look at your diagrams and to seek a contrary trade. The news of forex can be useful - but not in the manner that many tradesmen think. What precedes are right a couple of the examples, way in which you can employ news of forex (or all news of the market) to produce trade of opposite, to appreciate the commercial success of currency and to join the minority of profit of elite.