4 Possible Results from Wrong Forex Analysis

Analyzing forex wrongly could pose potential threat. Being careful when interpreting forex charts or any sensitive medium related to forex is very critical and important.

A lot of newbie are currently in trouble not because they were not informed but because they are not properly soaked or enlightened with the possible outcome of whatever decision they make.

Do you know that a lot of traders are in deep mess? Why because they never heed to instructions and the anxiousness of making it big at ones has consumed their thought.

Here are 4 possible outcomes from wrong interpretations;

#1  placing a wrong order.

Let me begin with a practical example; Mr. John was newly introduced into a multimillion opportunity. He was actually looking for a business on which he could invest the little money he had. After some time, he became anxious of making it through forex.

He went for some training to know more about what he was about to get involved with. After a while he was certain within himself that it’s time to get the party (business) started. He registered with a broker and was making about 200-300 pips for over a month.

But something remarkable happened one Tuesday morning; Mr. John after carrying out his normal analysis lost his portfolio.

The questions are;

  1. How did it happen?
  2. Why did it happen?

Well, how did it happen? It occurred because he placed the wrong market order. And why it happens? Was because he resolved wrongly, by given a false market interpretation of the forex market.

I believe you can learn from this little story of Mr. John. Someone raised a question;

Was it just false interpretation?

Yes it is. My advice to you is this- just a little mistake can cost you a lot. You have to be very careful when making decisions and adhering to advice.

However, placing a wrong order is a process whereby a trader, places an order that moves against him in the market.

Let’s take for instance, a trader who loves GBP/USD as his currency pair analyzed the market to move upward and places a buy order. To his greatest surprise, the market moved against him by moving downward.

Such an executed order is wrong because the market moved against him.

#2 Losing excess money.

Losing money in forex trading is a function of the order you place or the decision you make. This action directly depends on the order (buying or selling) you engage to carry out your analysis.

One of the negative effects of wrong market interpretation is losing a huge amount or even your portfolio.

This is the main reason why many forex coaches and forex training colleges keep alarming the fact of being careful with whatever move you make.

Therefore, It is highly advisable that you take forex trading as a business rather than a game.

#3 Mental confusion.

Mental confusion can also be an outcome of false forex interpretation.


We are all human and one of the basic problems we are likely to face is being in charge of your psychology.

According to an article written by Micheal Ashworth, He wrote an important point I will love to share with you.

He said that those who take time to relax and release inner -tension do much better physically and emotionally than those who fail to engage in such behavior.

In connection with the information shared by Michael, I believe you will agree with me that it will really be difficult for someone who lost a huge sum of money, as a result of wrong forex interpretation to be in full control of his emotion.

This effect will actually hold you, but you have to pick up and learn from your mistakes.

#4 Looking down on yourself.

This is one of the most common outcomes of traders, who falls victim of wrong chart interpretation.  They do believe in the fact that if it doesn’t work for them at first, it can’t be for them- especially the newbie.  The gospel truth is that you can do better if you want to.

Looking down on yourself is one of the downgrading acts you can ever do to yourself. Doing that is telling yourself that you are nothing, which is very wrong.

Allen H.Neuharth said in his quote that- I quit being afraid when my first venture failed and the sky didn’t fall down .you can now see that it is not over for you. You can really bring out the best in you, never give up.

In summary, these four possible outcomes of wrong market interpretation are to expose you to the negative effect of whatever decision you make while trading forex.