If you have a Forex funding account and you read about analysts online, you must have observed that different traders will interpret the same chart differently. There are many reasons why this happens. If you want to become funded account trader that takes profit, it is important to understand the reasons. Here are some of the reasons.
A major reason why traders see the same chart differently is that they approach it with inherent bias. For instance, some traders might believe that the euro will collapse in the next decade. If this is your belief, you will have an underlying bias when approaching the EUR/USD pair. However, when you get the Forex funding account, the market does not care about what will happen in the next decade. If you maintain this bias, it is going to skew your judgement unless you let it go.
Time frames can also affect your trading when you become funded account trader. For instance, a scalper will not worry about why the Japanese Yen is trading against the USD for more than a few seconds. However, swing traders will be more interested in the weekly support. For a swing trader, it will be easier to understand that 100 pips stop loss in the bigger picture means little. However, his focus and position size will be larger than someone scalping one-minute charts. He might have a stop loss of 14 points. It will also be likely that they have a bigger position size.
In some cases, it boils down to bad analysis. Some people simply have a hard time understanding technical analysis. Thus, they will not see things in the same way as someone who has honed their technical analysis skills. Besides that, some people simply lack the talent to become naturally profitable. As a result, they make horrible decisions even after they have read the charts. For those who have a poor understanding of technical analysis, they will look at the trend but they will fail to see resistance and support well.
For instance, some traders are excellent Elliot Wave traders. For other people, they work best when using horizontal support resistance. Keep in mind that no matter the methodology you use, it is never going to give you 100% success. Any methodology can make money but they will fire off at different times.
Technical versus Fundamental
Besides that, some traders will focus on fundamentals while others focus on technical analysis. For instance, while some check on price action, others will focus only on fundamentals. While fundamentals will influence price action, the effect is not always instant. In most cases, fundamental traders do well as long-term traders and technical traders do best as swing traders.
There are millions of other reasons why you can interpret a chart one way and another just a few hours later. Sometimes, it is due to brain fog while at other times, it may be because you are not focused enough. Maybe your mind is in on a family matter or maybe you are still emotional after the last trade, which went south or was great.