The Forex Crowd and Is It Worth Following?.

In any financial market, there's such a thing as a crowd, but it's not always a good idea to succumb to its influence and blindly follow it.

Following the crowd most often leads to losses or missed profits, so it's important to carefully study the current situation before making a decision.

Forex is a virtual exchange, so when making trades, traders aren't present on the real trading platform, but psychological pressure still remains. Its impact can be understood through a specific example.

Inexperienced traders using intuitive trading often find themselves in this situation.

For example, the market has been trending upward for a long time. A trader, seeing the price rising, enters a buy trade. In reality, the daily high has already been reached, and the market is overbought. A short while later, a reversal occurs, and the price sharply declines. As a result

, the trade becomes unprofitable. To avoid such situations, trading should be based not on market sentiment, but on the results of technical and fundamental analysis.

Forex dealing centers provide, is also a mistake . A trader, seeing that most market participants have opened short or long trades, tries to follow their example. However, it's important to remember that only 5% of traders are successful, and it's not a guarantee that they are currently trading with the trend, so you might not pick the right side.

Therefore, when searching for entry points and determining the direction of transactions, you should only take into account these indicators: the width of the price channel, major minimums and maximums , the latest important news and the likelihood of new announcements.