Profit in the financial markets: contrarian indicators

People spend lots of time, effort and money on research and analysis in the financial markets.

And of course there are entire teams whose job it is to look at and analyse the market, to find trends and patterns and all sorts of similar things such as this.

Just why, then, is so much money put into this sort of thing, and why do people insist on doing so much financial analysis of the currency money markets?

The reason is that the first person to spot a new trend is likely to make the most profit, as they can lay in or remove themselves from a position as relevant and then when everyone else catches up and the trend kicks in they are progressively late in terms of cashing in on that.

And hence this is why so much effort is put into analysis and research.

There is always the dream that someone will find an almost foolproof indicator.

However this is not possible because the future is always unpredictable, and there is always the chance of something really unexpected happening to shake everything up and making trend analysis meaningless - either some sort of disaster, or indeed there could be a great technological breakthrough which leads to all sorts of changes too.

Related Articles

Gap Analysis
Japanese Candlestick Charts: Money and Currency Analysis
Foreign currency and moving averages
Continuation Patterns Explained
The breakaway gap: Currency Analysis
Getting a Water Meter Fitted

More Stocks and Shares Articles