Forex; Analysis Paralysis!
For most investment areas, one can find quite a few experts and many views. The issue to remember though is that if these people were to show the money that they have made, then one could categorically state if they should be worshipped like Gods of ancient times or not.
If those who actually have made it big, like George Soros or Warren Buffett express an opinion they are worth listening to. The markets, be stocks, currency or any other type are influenced by many factors which many think they can predict.
Asking analysts, trading experts or even day traders, and the signals and tools that they all use are not the same. The broader justification for coming to trading decisions is not uniform, there is no right or wrong, and this is where confusion comes from.
Some justify their decisions based on charting, while others highlight something totally different, like company data. The main point is to ascertain information from a number of sources, which leads to a more informed decision.
There is so much data, so many opinions that deciphering everything in itself can become a cumbersome task. The main point is to establish a basic foundation to trading, a not too complex approach. This will allow one to test a theory against the market and make appropriate changes.
Of course no theory is flawless and incorporating information that one believes is useful is the best approach. Be it technical analysis, fundamental analysis or a combination of the two, sticking to a game plan and not changing the goal posts on an emotive basis is crucial.
When an investor factors in the ‘noise’ that markets produce and other opinions, it is important that information chosen provides value add to a strategy. The experts out there do not always get it right and with this in mind caution must always be applied.
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