How traders approach the market?

[Tobi]

The main market approaches that traders usually undertake are technicals and fundamentals in order to make sense and justify market moves.
Technical traders rely on chart indicators or candlestick patterns to decide whether it is appropriate to enter the market. However, they could find themselves frustrated in many occasions due to price not respecting their levels. As an example, they perceived a strong support that held market previously plus it is situated at a confluence zone such as a Fibonacci level and a moving average. Despite that market price broke that level and stopped them out leaving them frustrated with many what, how and why questions.
As for the fundamental traders, they rely heavily on the news to anticipate market direction. They are often correct in their predictions but their entry timing in the market is often early. In many occasions prices go opposite to their position causing draw-downs in their accounts and perhaps stop them out before start heading in the correct direction.
The reality could be there is a third element often neglected by market participants.

 

[monster_masterpiece]

The market price is generally during working hours office except there is timezone difference between trade open and close and your country timezone.

 

[kit_hung]

You have described the real challenges that face both technical and fundamental traders. It is true that the market often does not respect expected levels, and information is often late in bringing the right direction.

This is where the importance of the third factor—market psychology—emerges. The emotions of market players significantly affect price movements.

Learning to understand market behavior and patience are essential. Continue to observe, learn, and improve your methods. Success is built on knowledge and perseverance.

 

[Fire&Rain]

I think most traders eventually learn that relying only on either technicals or fundamentals leaves gaps. Technicals show patterns but don’t always hold when unexpected news comes in. Fundamentals explain the “why,” but the timing is usually the hardest part. The best traders I’ve watched mix both approaches and add discipline with risk management so that surprises don’t wipe them out.

 

[monster_masterpiece]

I think most traders eventually learn that relying only on either technicals or fundamentals leaves gaps. Technicals show patterns but don’t always hold when unexpected news comes in. Fundamentals explain the “why,” but the timing is usually the hardest part. The best traders I’ve watched mix both approaches and add discipline with risk management so that surprises don’t wipe them out.

Most traders are relying on informations spread on group of traders on social media.

 

[kit_hung]

Most traders are relying on informations spread on group of traders on social media.

You have touched on a very important point! Combining technical and fundamental analysis creates a better balance. But discipline and risk management are the main pillars. Social media can help, but not everything is accurate. Learn, filter the information, and trust your process.

 

[monster_masterpiece]

You have touched on a very important point! Combining technical and fundamental analysis creates a better balance. But discipline and risk management are the main pillars. Social media can help, but not everything is accurate. Learn, filter the information, and trust your process.

This is theorical part. Reality they follow traders group and make decisions on what is shared on facebook group and could lose their money.

 

[eLdavis]

Having knowledge on all techniques would be of a huge benefit when it comes to learning how to trade the market.

 

[monster_masterpiece]

Having knowledge on all techniques would be of a huge benefit when it comes to learning how to trade the market.

You learn every day a new thing.

 

[eLdavis]

You learn every day a new thing.

You are right, when it comes to forex trading, the learning process never ends, each day we enter the market we always learn something new.

 

[monster_masterpiece]

You are right, when it comes to forex trading, the learning process never ends, each day we enter the market we always learn something new.

It differs from learning and losing in trades or learning and being far from running trades.

 

[kit_hung]

It differs from learning and losing in trades or learning and being far from running trades.

It is true my friend, the forex market is a never-ending school. Every day as we venture into the market, we encounter new situations that teach us more about patience, strategy, and trading discipline.

There is a big difference between learning through losses and learning without direct participation. Losses hurt, but they also open our eyes to mistakes and opportunities for improvement. Distance learning builds a foundation, but direct experience strengthens understanding.

 

[monster_masterpiece]

It is true my friend, the forex market is a never-ending school. Every day as we venture into the market, we encounter new situations that teach us more about patience, strategy, and trading discipline.

There is a big difference between learning through losses and learning without direct participation. Losses hurt, but they also open our eyes to mistakes and opportunities for improvement. Distance learning builds a foundation, but direct experience strengthens understanding.

Learning without direct participation only involves teacher course fee while through loses could be bigger than that add to psychological effect.