Forex forecasts: where is the truth and where is the scam?

February 19, 2019

On the Internet today there are a large variety of sites that provide various kinds of information, which, one way or another, refers to forex trading. There are many sites, even more analytical articles, and a fair question arises: can we trust such sites, and if so, how to choose the right and useful resource?

 

The essence of the most accurate predictions

It is easy to find really good analytical reviews on the Internet, but there are several ways to evaluate their quality and usefulness:

  • Through experience, while feeling the consequences of the decisions that were made based on the information received.
  • Tracing the number of predictions made in advance by the authors of the articles.
  • Look for analytics from sources that have been tested for years.

 

Types of analytics

But first, let's find out what types of analytics are divided into and how they differ from each other. Two basic types of analysis are used in currency market analysis: Fundamental и technical. These two types of analysis can be found at any broker, but today we will look at an international financial company for an example AMarkets.

Fundamental analysis is the most complex. This type of analysis takes into account political sentiment in countries; compares the state of the economy of a particular country with other economies; takes into account monetary policy; and the global state of global financial, commodity and stock markets. The basis of the fundamental analysis are macroeconomic indicators that evaluate the state of the commodity market, securities market, currencies, labor and GDP, as well as various business activity indicators, which show the state of the sectors and economies of major countries. This type of analysis is needed to predict the reversal of the entire market in a certain direction.

Technical analysis is no easier than fundamental analysis. It is based on the study of the chart and finding patterns of price movement.

Types of technical analysis:

Technical analysis is indispensable for predicting entry points into the market.

Currently, many dealing centers, including AMarkets (site), make their own forecasts, which is undoubtedly pleasing, because it gives the trader an opportunity to penetrate into the essence of the situation on the market and more reasonably approach the decision-making, while not losing a lot of time to collect the necessary information. However, it is necessary for the analysis to contain not only price statistics, but also useful recommendations on the orders: how to open and close positions, how to determine the right moment to enter the market, and how not to miss the exit from the deal. It is necessary for forecasts to be both short-term and long-term.

There are 4 components with the help of which it is possible to forecast the dynamics of a trading instrument: fundamental and technical analysis, wave and complex forecasts. The mutual work of these 4 elements can give a forecast that will increase the chances of successful trading and profits.

Thanks to the forecasts prepared by analysts, the chance of closing a deal at a profit increases, while the possible risks are reduced. Forex brokers The Forex market in the United States has a lot of information on their websites, so it is advisable to look through them more often and draw conclusions for yourself. Nevertheless, it is not advisable to rely only on tips, it is necessary to clearly weigh all available information and correctly transfer it to your trading strategy, in this way, the trader can provide a profitable trade.

What type of analysis to choose for forex trading?

 

Paid and free predictions

There are companies on the market that specialize in creating signals. It is not uncommon to see forex brokers who provide such signals, but they are not available to all traders, and are often provided only to VIP clients.

This information can be received by mailing out or via sms message. The support service of some companies calls their clients, informing them personally about the details of the deal. These signals contain precise instructions and advice on how to open orders, modify them, and close them. For example, AMarkets' premium analytics is sent to clients who have deposited $1000 or more, and the analytics is essentially free.

You may ask: What then is included in free predictions? The information that is provided for free is often very different from the paid information. Most often the free forecasts are of a general nature and do not contain clear instructions on how and when to open and close transactions. Most of the time such forecasts contain information about the probable direction of currency movements or expected price range. But do not underestimate this information. There are large dealing centers, which provide quality information for free. Daily analytics is available to all AMarkets clients without exception and can be found on the website in the "Analytics" section.

Paid and free forex signal forecasts

 

Can I trust the forecasts in the forex market?

The forex market is unpredictable and even experienced traders lose money, so you have to understand that no company is able to give 100% forecasts and guarantee a win-win trade. The difference between paid and free signals here is the level of risk, which is less if you pay for it.

With free analytics you only have a trading direction and it's up to you to decide when to enter the market and when to close the trade. Keep in mind that many traders are not psychologically ready to withstand a long period of opening a deal. The fear of losing is often the factor which makes a trader to make a mistake. When you receive a paid signal, you trust the company's analytics and clearly follow its instructions. Here you need to switch off all your knowledge and just trust a professional.

 

How not to make a mistake in choosing the right asset?

This is the key question that every market participant asks. In essence, there are no differences between the assets, and the rules and laws of the market that move gold apply to currencies, oil and indices. But then what is the difference and which instrument to choose for trading?

To answer these questions, it is necessary to consider the following important points:

  1. Forecasts. If you rely on various forecasts and as a result decide which way the price will go, you need to find those assets on which the forecasts work well. To trade profitably, you need to find an asset and information sources that complement each other well. In this case, the chance of successful trading will increase.
  2. Asset volatility. In other words, how fast it changes. There are some currencies, such as the euro, whose price fluctuates a lot every day, and there are some that do not change that fast. On the one hand, such trading can seem boring and uninteresting, but on the other hand, it is necessary to find the asset, the quotes of which are not subject to strong fluctuations. This area is quite extensive to study.
  3. And, of course, you have to find one. assetYou will be able to understand the dynamics of its price change. Once you have tried different instruments, you will surely find the one that suits you, your strategy and your trading style. However, it is better to start trading with well-known instruments, such as EUR/USD, GBP/USD, USD/JPY, Brent or WTI, and, of course, gold. After mastering them, you can safely switch to cross pairs and do stock market.

How to choose an asset for forex trading?

 

Conclusions

Thus, the most accurate forecasts are made through the simultaneous use of technical and fundamental analysis. The main task of forecasting is to identify where the market will move, as well as to determine the possible values to which the price can reach. All this is necessary to find the right moment for opening a deal. To begin with, use the analytics of the online broker AMarkets (site), whose reputation in the financial market is trustworthy. The analytical department of the company is not one year old and it has proved itself only from the good side.

In any case, it is necessary to understand that no matter how good the forecast is, you should not be guided only by it in the market, because it is only useful information that helps to make the right decisions. In addition to forecasts, a trader needs his own trading strategy, discipline and attention in order to trade profitably and make money on the market. All of these things are at the core of his forex trading training.

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