Forex

Markets generate vast volumes of information:

annual and quarterly
reports, earnings estimates, corporate insiders’ reports, industry group
studies, technology forecasts, weekly, daily, and intraday charts, technical
indicators, trading volume, opinions in chat rooms, the neverending
discussion circles on the Internet. With so much data, you soon
realize your analysis can never be complete.
Some traders who have lost money fall into paralysis from analysis.
They develop a quaint notion that if they analyze more data, they’ll
stop losing and become winners. You can recognize them by their
beautiful charts and shelves crammed with stock reports. They will
show you indicator signals in the middle of any chart, but when you
ask them what they will do at the right edge, they only mumble
because they do not trade.
Analysts are paid to be right; traders are paid to be profitable. Those
are two different goals, calling for different temperaments. Institutions
tend to separate traders and analysts into different departments. Private
traders have no such luxury.
Analysis quickly reaches the point of diminishing returns. The goal
is not to be complete but to develop a decision-making process and
back it up with money management. You need to develop several
analytic screens to reduce a huge volume of market information to a
manageable size.