A Forex Trader Mind 1

When you first look at how the forex market behaves in a chart, the first thing many new traders are prone to think is that they can predict the behavior of that market. There seems to be something on the charts screaming at the new trader that the market’s next move can be somehow easily predicted. That he could have predicted that jump or plunge of a particular currency that develops in front of his very eyes. And this prediction method shouldn’t be hard to implement.

As you analyze a forex chart you can see how the price of a particular currency pair behaves as in a wave pattern that bounces up and down with very particular oscillations. As you travel along with the “wave” it’s very probable that you can’t refrain yourself of thinking that you somehow could have guessed that move of the market you so clearly see on the chart. It seems there is something wired in our brains that make us think that if we see a phenomenon with some pattern involved it means we can easily predict its behavior.

But sometimes things are not that simple and we shouldn’t let the first impulse of our logic take hold of our decisions when trading. As a forex trader you should always consider that although it may seem straight forward to predict a forex market move, it’s not as simple as just looking at a forex chart and guess what will come next. You must first understand the behavior of the market and the forces behind scenes that push the currencies up or down before you can think of predicting a market’s move. These forces are the hands that move the wires in the markets and that will decide if you win or lose when forex trading.