Anticipation of Trade

The forecast predicts that the market should do. Once traders using proven methods, formed the forecast predicted the date and price indicated on the graph, or trade in a diary. Prognosis - this is just one component of a plan formed by trade. When done properly tagging, a forecast of the work is finished.

Trader uses all his skills to sell (or not trade), in accordance with the fact that the market does, not that he should do, according to the forecast. Once people begin to risk money on the market, projected to sell or a proven marketing techniques, they wear their "uniforms Trade." From this moment on, they should use their skills as traders.

The advantages of the projection
The reason that many people spend time to study and formation of projections, is that well prepared the forecast, if properly used can significantly increase trading profits. In addition, the forecast gives the trader confidence in the finding of long-term position.

Professional traders use the forecast to afford to enter the market as close as possible to the confirmation or the top of the base. They also seized more profit by using a similar stop-order, as predicted turning point is approaching. If the market does not change direction, as predicted, it has no meaning for them because they are in the market and the market is moving in the direction of the transaction. They continue to use their trade skills to stay in the trade prepared in accordance with their trading plan.

Professional traders are also using the forecasts to prepare for a possible trade campaign, which is to trade in the widest possible range market movement, as only the main peak or the base has been confirmed. And Gann and Livemor regularly reminded traders that the big money was made when trading in large movements, and that the skills can be of great assistance when trading on such movements.

Forecasting Traps
Some traders falls in love with their forecasts. They are in the market, but not in a position to change their "uniforms prediction" to "uniform trade." They are, in this case are fully subject to certain traps forecasting.

Forecasting can reduce the profitability of trading for some inadequately trained traders. This usually occurs for one or more of the following reasons:

1. They have not been consistently profitable traders before the application of foresight in their trade. As a consequence, they are trying to sell to the forecast, and not in line with market reality.

2. Even when the prognosis seems to work, they conclude the deal confirmed in accordance with their rules, but they then presume that the market should continue to trend in its new direction. If not, a good deal soon becomes losing.

3. Once they make a forecast, it is difficult to ignore the forecast and trade the market forecast in the opposite direction, when it became clear that the outlook is not working. For example, if the forecast suggests that the main peak occurred in late October this year, but the market still rising steadily in November, a professional trader would understand that there is only one direction to trade, and it is with the trend upwards. Many traders lose enormous opportunity if they would throw their prognosis of inaction, when the prediction fails.

The biggest enemy of traders, to make predictions - it is their ego. Successful predictions worked wonderfully in conjunction with the ego, but only if the trade skills that lead to successful prediction trading profits.

On the contrary, the failure prediction - this is just a forecast. This is not a negative indicator of the knowledge and skills of analysts. Anybody who makes a forecast can not be right 100 per cent.

The forecast, which does not result in turning the market does not necessarily mean the loss of the transaction. In fact, if the trader is a "commercial uniforms, more than likely that he will finish the deal is very beneficial, as the market continues to move in the direction of the transaction.

In whatever is, try to learn to make good predictions. Just make sure you always remember what your skills as a trader Chiva will increase your trading profits. The analyst who does a good prognosis, but who can not effectively deal is likely to be left with nothing.

Forex Magazine
based on Lambert-Gann Educators Inc.