Forex analyst is a specialist who makes research, generalization, and forecast of currency rate dynamics at forex market, as stated in Wikipedia. However, these days the “Market Leader” has been receiving more and more letters from its readers who fail to understand the logics of “business media analysts”, whose forecasts are:
• either abstract and state the past, fail to give simple and clear recommendations and answers to the question of tomorrow’s exchange rate of ruble, dollar, euro, or hryvnia at Forex market;
• either directly opposite to the common sense, like “Forex analyst” Aleksandr Okhrimenko, who claimed on October 09, 2013 that USDUAH would drop to 4 hryvnias, as a result of which many Ukrainians have lost their money, as devaluation of hryvnia to US dollar and euro continued.
The issue of trust to Forex analysts and their forecasts on exchange rate of ruble, hryvnia, dollar, and euro has been studied by the “Market Leader”.
Experts on Differences Between Analysts and Traders at Forex Market
The “Market Leader” internet portal has asked experts to comment on differences between analysts and traders at the market. The experts included Evgeny Olkhovski (Toronto, Canada), Evgeny Antipenko (Odessa, Ukraine), and Evgeny Bobrov (Moscow, RF).
- Market Leader: Should one trust Forex analysts and their forecasts on exchange rates?
- Evgeny Olkhovski (Canada):You should trust only yourself and your own analysis if you are going to invest in future, Dow Jones index, gold, real estate in Spain or Israel, or a PAMM account of Forex market. If you are not sure – do not do anything, for you will at least not lose what you have already earned.
- Evgeny Bobrov (Moscow): In the USA, Canada, and European Union there is “The Institute of Experts - Financial Consultants”, who give clear recommendations on issues ranging from real estate or precious metals market to futures and options at exchange markets and currency rates at Forex. Certainly, not for free. In Russia “business media” have decided to perform this function. On a daily basis their analysts give free exchange rates, as a result of which Russians lose, but not win at RF and global financial markets. This is logical if to recall the saying about “mousetrap” and “free cheese”.
- Igor Zotov (Tomsk, Russia): In most cases the work of an analyst in one company or another comes down to correct explanation of “Why has this event occurred? Why has the news not been worked off? Why has the level of support or resistance failed to resist the pressure of price movement?” This generally comes down to working with historical data.
The task of a trader, as a person who is interested in future price movement in the set direction as a proof of calculated variant, is to hold multidimensional comparative analysis. In this reference it is of great importance to:
1) assess the current condition of a financial instrument;
2) compare it to historical data;
3) make a conclusion of highly likely future outcome.
Few people understand the meaning of a phrase “trading probabilities”, even fewer understand its meaning and can bring it into practice. If to assess the difference between an analyst and a trader by the scale shown above, a trader processes three times as much information, thus being three times as much oriented to succeed in getting financial benefit from changing quotations of a trading instrument.
- Market Leader: Is it true that a term “analyst” if offensive among professional Forex traders?
- Evgeny Antipenko (Ukraine): It is believed that those who work in analytical department of broker companies are played-out traders. There is a reason to this:
• no successful trader will spend the whole day sitting in an office of a forex broker for the salary of several hundred euro per month and spam at Forex forums to protect his broker company;
• analysis of currency rates sometimes clearly shows very low professional level of analysts in “business media”. As a proof of this: enter a query “official rate of ruble (hryvnia, tenge, etc.) for today” in Yandex search engine, and you will see such things cannot be written by a professional trader. For example,
or
- Market Leader: Frankly speaking, we have not understood anything from Forex analytics provided by Moscow and Belorussian colleagues. And you?
- Evgeny Antipenko (Odessa, Ukraine): Neither have I, because a trader thinks and writes in an absolutely different way than the mentioned “analysts”. Speaking about USDBYR, the following is to be done:
1. give a chart of trading at Forex market;
2. indicate a strategic trend – bullish, whereby Belorussian ruble will continue falling;
3. explain tactics for the day – continuation of a trend or correction (temporary reverse movement);
4. indicate the point of transition to a flat – pivot MF (Masterforex-V, authoring of Masterforex-V Academy). Breaking above pivot MF3, as shown in the chart, will serve a transition into a temporary flat;
5. give clear recommendations to traders; look for point of entering a deal at “buy”.
- Market Leader: Now I understand why your students have a stable earning at Forex market: you teach them to think differently, don’t you?
- Evgeny Antipenko (Odessa, Ukraine): You are right, and this is not the point of 100 global discoveries made by Masterforex-V Academy, which are unknown to the market, but which make it possible to find a certain point of entering a deal. Different thinking matters; it makes a Forex market chart become a “road or cartographic map”, where you would understand every market motion. As a result, you can then earn at Forex.
- Market Leader: Will you agree that, if a Forex trader is a profession, known from A to Z only by 3%-4% of “forex market specialists”, should successful businessmen and representatives of other professions who earn money in other spheres of economics and politics?
- Evgeny Olkhovski (Canada): if successful businessmen want to keep their savings not in a “glass can”, but invest in banks, UIFs, investment funds, PAMM accounts, stock indexes, etc., they should at least grasp the basis of this profession, finish a free Forex studying school, attend a free webinar with professional Forex traders, etc.
