Forex Forecasts – How Human Weaknesses Wreck the Best Laid Trading Plans

Forex forecasts are available freely in many places on the Internet, and even in off-line publications. These types of foreign exchange market services are created for the active forex trader who is looking to predict currency pair prices over the long and short terms.

Long term forex market analysis is designed for the long term trader who might be interested in trading time frames that could fall anywhere from several days to several weeks. That is to say, this trader will open a trade and hold his position for that length of time. On the other hand, a short term trader will be interested in forex forecasts that provide analysis for shorter periods of trading time, typically ranging from a few minutes to about 4 hours.

Technical analysis could arguably be the only sure way to properly trade on the forex market today. The reason this may be so, is the fact that this type of research relies on the study of technical indicators which generate trading signals, instead of relying outside factors like the economy, and so on. From these trading signals, forex forecasts can be made which in turn evolve into the various trading strategies.

Many forex traders pride themselves in the trading strategies that they have created, and will invariably consider their strategies superior to others. But human beings can be interesting creatures. There will be times when a trader’s forex forecasts are actually flawed, because a short-cut was taken in arriving at a trading strategy. Human beings can get emotional, tired, sleepy, and even unfocused, resulting in errors being made.

One sure strategy that can result in constant forex trading profits is the use of fx trading software. As long as a trading software is built on solid principles of technical analysis, and has good safeguards, it can reduce the incidences of loss of profits due to human frailties. Computers will not get tired, they will operate the same way at all times, and they do not get emotional.