There is so much growing interest in the forex market that it is only obvious that people focus a lot on what the successful forex traders do right on the foreign exchange Sydney.
In fact, you will find numerous forex beginners on the internet asking these questions and reading various guides and articles on what makes a successful forex trader. There are also various modules and techniques that have been used to identify what qualities make traders successful on the foreign exchange in Sydney.
While some sources say that it is a natural skill with numbers and some say it is about how detached a trader can be, others cite fundamental analysis and the need to keep desire from becoming an obsession. Here is another take on success on the foreign exchange Sydney in terms of economists and psychiatrists.
How Do Economists See The Market?
An economist’s view of the foreign exchange Sydney is largely based on fundamental factors such as interest rates, GDP growth, employment numbers, trade balance, and inflation rates.
An economist will always try to go to the root cause for any price movement. This is the right approach because if you can understand what drives the market then it will help you make profits and succeed in the long run.
What Would Psychiatrists Look For?
The psychiatrist’s approach to the foreign exchange Sydney would be different from the economist’s as he will focus more on what the majority of the market is thinking.
Essentially, a psychiatrist understands that the market is driven by supply and demand which is driven by the actual act of buying and selling currencies.
Effectively, the psychiatrist considers that if the majority wants to buy but the fundamental factors are showing that the market is overbought then the sentimentality of the market will win over its fundamental dependence.
The Relevance Of Governing One’s Own Emotions
Becoming balanced emotionally on the foreign exchange Sydney is crucial. Both the economist and the psychiatrist would be able to achieve this. The psychiatrist would be able to do so because of his natural knowledge of emotions and levels of self-awareness, and the economist would also be able to because his behaviour will be solely based on what fundamental factor he sees in the market.
Is One Or The Other Method Better?
Now, the big question is, which approach is better in the market? The answer is that both approaches can work in the market but the truly successful approach will be one that creates an amalgamation of both of them.
It is entirely possible for a trader to focus on fundamental factors as well as keep a close eye on technical and sentimental factors or vice versa. In fact, it is highly recommended that your strategy and trading plan creates a synergistic environment where you are at home checking fundamental, technical, and sentimental factors.
Initially you will have difficulty finding the connection and the balance between the different disciplines, but with practise on the foreign exchange Sydney it would gradually become easier for you.
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