Currency exchange trends and currency exchange predictions are not a similar thing. A system that is based on trends involves looking at charts to see what the price movement has been over the past few periods. We can benefit from that by backing the trend and watching our profits rise – provided of course that we get out before the unavoidable reversal. It is always important to remember that no trend continues for all time. Currency exchange prophecies involve making a judgment about which way the market will go in the future. The issue with trying to predict the forex market is that many of us do not have any special information on which to base our predictions. Often times it can come down to a gut hunch which is not a lot more than prediction or betting. If we rely on info from fiscal websites, blogs or papers then we are putting our trading into the hands of reporters. Whether or not the information is correct, we may forget that the rest of the world has accessibility to the same information and so the market may already have responded.
Trends on the other hand allow us to set up our own systems and avoid trading around occasions when news are due. Most traders find this a way more reliable method.
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