Forex

This is how I see the two types of traders: Do you agree, disagree ... why?



The Fundamental trader holds to the theory that the Forex market is subject to random (unknowable) fluctuations which make predicting the short term trend impossible. The only way to predict direction is to evaluate the sum of the fundamental indications which drive currency prices over the medium and long term. If one observes enough of these fundamental indicators, one can begin to predict how it will affect the valuation of a particular currency, versus another, in a particular time frame.

The technical traders hold to the notion that the indicators are too numerous and insidious to aide in any prediction: That those fundamental indicators are priced into the markets long before they are made public. The indicators to the indicators are really what drives the market… and those are too complex to be known. The only way to begin to predict this level of complexity: is to observe the data and look for trends, correlations and relationships.