Forex Analysts

The retail forex market is booming. People are turning towards forex in droves. A critical lack of market information has led to the rise of a new forex superstar, “The Forex Analyst.” Retail forex brokers are doing a booming business as more and more people enter the retail forex market.

Every forex broker wants you to open an account and start trading forex immediately even if you don’t know how to trade. Don’t know how to trade? Don’t worry; we have the people that can teach you. Can’t tell which way the Euro will go. Don’t worry, we have the experts. Retail forex brokers are hiring and promoting the skills of forex analysts in droves in order to offset their client’s fear of the forex market. Who is a Forex Analyst by the way?

Don’t try to forget the dotcom bubble. Many people had got their fingers burnt in that era. Sadly the investing public seems to not have learned any lessons following the internet boom era IPOs. Forex analysts are master peddlers of excuses and explanation as to what did happen. But a forex analyst will never really tell you what will happen.

The job of a company hired stock analyst is to sell its stocks to the public by painting rosy pictures of the future price appreciation. Just think for a moment. Do you think a company hired analysts will give anything but a strong buy to the company’s stock if a company is going public? A similar conflict of interest arises in the retail forex world now full of forex analysts more than willing to share their views on TV, print or chat rooms.

Forex analysts are almost similar to stock analyst. Their job is to make the clients trade as much as possible. Who are these forex analysts? Are they forex traders? Do they trade their own money? Most of them are not traders. A look at their profile will show you an Ivy League degree full of theoretical knowledge. Is any of this knowledge applicable to day to day forex trading? Of course not!

Forex analysts are supposed to know a lot of meaningless forex jargon and economic figures in support of their views. Trust me they would have started their own fund long time ago if they were smart enough. What is the job requirement of a forex analyst? Look good on the TV and write well.

Forex analyst will always be full of great trading ideas to help you trade more since forex brokers only make money the more you trade as a retail forex trader and the more you lose. What is the exact job of a forex analyst? Like any job in the world, the job of a forex analyst is simple to make money for the forex broker company.

Many traders don’t know this stupid little secret. You will never trade from the advice of your forex broker if you are wise. Some moves just happen in the forex market without any fundamentals or technicals supporting them.

Corporate flows make a mess of the intra day forex market. Most of these corporate flows happen in the intra day market. Most of the moves started by these corporate flows have no fundamental or technical reason behind them. Yet no self respecting forex analyst will be caught without a neat explanation at hand.

Financial experts are not even ready to accept technical analysis as a subject. Yet many traders believe in technical analysis and it does work, I can testify to that. Do you know the theory of random walk? Markets move in a random manner. I would love to host a trading competition between the retail forex analysts and some of the dart throwing monkeys. Monkeys have a higher chance of winning. On whom would you bet?