When it comes to Forex traders, each has their own opinion on what the market is doing, why it’s doing it, and what the future holds.
But one opinion doesn’t sway the market.
What many people fail to remember is that despite their personal views, the Forex market’s overall performance is dependent on every participant’s opinion – This is called Forex sentiment.
Quick review Forex and market terms
For those who don’t know the market or financial world all that well, the Forex market is the over-the-counter global trading marketplace for the world’s currencies.
If a market is performing well, it’s considered ‘spirited and burly’, with prices rising. This is a ‘bull’ market. When the prices are dropping, and the market is ‘sluggish’, it’s a ‘bear’ market. You can find out the backstory to these terms here.
How this translates to Forex sentiment
It doesn’t matter whether an individual trader thinks the market is bullish or bearish, if they place their trade on the wrong side of the Forex market’s sentiment, they’re likely going to lose out on the trade.
Therefore, it’s important not to make emotional decisions based on your own perception of market movements, but to make calculated decisions based on the combined opinions of all market participants.
Analysing Forex sentiment
Reading into how the market is feeling is hard work – You’d need to analyse multiple charts, read several reports, follow the trades that banks and individuals are placing, as well as listen to reports on financial news channels to get an idea of the market’s overall mood and whether bullish or bearish.
Just a part of the puzzle
Not only that, but you’d also need to look at technical and fundamental analyses in conjunction with Forex sentiment. And you’d need to do this each day if you wanted to make an informed and rational decision.
That’s why Learn to Trade uses its partner’s software, SmartCharts. This powerful piece of programming does all the analytics for you and shows you which markets are bearish, which are bullish, and which are the best for a successful trade.
Cracking Forex sentiment
By combining Learn to Trade’s strategies and risk-management systems with the security and analytical power of SmartCharts, anyone now has the tools and the ability to successfully trade on the Forex market.