Of course, having the right psychological demeanor for trading is worthless if you do not have the skill sets needed to be a successful trader. Whether you favor the fundamental or the technical side of things, you need to be skilled at what you do. Learn how to trade correctly before you worry about making the right decision for the right reasons.
Most traders value a technical approach, but this is not always the best way to trade. While it’s true that technical signals may have indicated something semi-consistently in the past, there is no hard evidence that these happenings will occur consistently in the future. Instead of relying solely on charts and abstract signals, there is a third approach that is perhaps even more valuable. Sentimental trading allows you to identify trends and ride along on them in order to make a profit.
One such example of sentimental trading is trading the news within the Forex market. When this happens, you are awaiting certain key moments when currency-related news is released before making a trade entry. This is a great way to make money because it allows you to focus on a few specific times per day that are going to see the biggest expected gains for you. This frees up time and energy and will let you do the things that you truly love to do on a more frequent basis. Trading sentiment is not always so cut and dried, but with some practice, you will quickly learn which events are the most powerful at moving markets, and where prices tend to go after these occurrences.