In developing a sound Forex strategy for successful Forex trading beware whose opinion you listen to. You want your Forex strategy to be based on objective data. The closer someone’s opinion is to the data the more likely it will be useful to you in your Forex trading. Depending upon whose opinion you listen to the opinion may be tightly reasoned and based upon hard facts. Depending upon whose opinion you listen to the opinion may be another rehash of a tired argument.
Abraham Lincoln was criticized a lot during his political career and during his years in the presidency. Published opinions were very politically motivated. Today, depending upon whose opinion you listen to Lincoln was the first or second best or most revered US president depending upon where you rank George Washington.
What brings the matter of whose opinion you listen to mind is a spate of published opinions critical of the Obama administration and the handling of the economic crisis. In Forex trading we are only interested in politics if it promises to change monetary or economic policy. We base our Forex strategy on the things that we believe will affect the value of the dollar and other major world currencies.
A number of the criticisms alluded to above are rehashes of last year’s arguments. Everyone is entitled to their opinion but second guessing does not help us in Forex trading.
What we want in developing Forex strategy for successful Forex trading is the ability to predict the future, not deconstruct the past. On the one hand deconstruction of the causes of the Great Depression as done by the current Federal Reserve Chairman, Ben Bernanke, was helpful in averting another Great Depression last year. However, Mr. Bernanke’s work was based upon hard fact and the opinions in his work are very supportable.
Depending upon whose opinion you listen to there may be hard facts to support it or there may be a political agenda. Political agendas are often disguised. That is the nature of politics. But, don’t let your politics and your Forex strategy get confused. Wanting another party in power and seeing the future in Forex trading are different animals and should be kept in different cages.
Political arguments and the kind of destructive group psychology that interferes with successful Forex trading are similar in their deleterious effects on developing and implementing a successful Forex strategy. Look for numbers when you read opinions about politics, monetary policy, and economic policy. Look for hard data and read carefully to understand the argument that connects the facts and the opinion. Depending upon whose opinion you read the connection between facts and opinion may be strong and clear or very tenuous. If the latter is the case, run away, don’t walk. Successful Forex trading is based upon a sound Forex strategy and that is based upon sound opinion supported by fact.
Do your homework. Take notes. Read a lot. Depending upon whose opinion you listen to beware as it can make or break your Forex trading.