High-quality analytics is a very important component of successful market trading. Of course, it is better if a trader can independently and competently assess the market situation and, on the basis of this, make an optimal trading decision. But solving such a problem will require considerable trading experience. Novice traders often use third-party analytics in their trading. And there is nothing wrong with that. However, from the very beginning it doesn’t hurt to understand that someone else’s analytics has both pros and cons. And today I want to tell you about them. The correct attitude to this issue will allow a trader, on the one hand, to avoid unnecessary losses, and on the other hand, to improve the results of his trading.
Pros of third-party analytics
Someone else’s analytics , authored by a professional trader, will certainly be useful. However, one must understand that such materials are unlikely to appear in the public domain. The free version of analytical reviews can also be taken into account in your trading. With its help, a trader can get certain guidelines for making trading decisions: the expected direction of price movement, significant levels. In addition, third-party analytics is a kind of training course. If you are interested in it regularly, then over time you can understand how this or that indicator works, levels are formed. Some analysts explain in detail the impact of news on the currency pair rate. And it will help a novice trader understand the basics of fundamental market analysis.
Cons of third-party analytics
If we talk about the shortcomings, then there are also a lot of them. Alien analytics may be perceived by some novice traders as a ready-made recipe for profitable trading. The trader stops thinking on his own, which can have negative consequences for his deposit. In addition, it can be difficult to assess the quality of analytical material. And this applies not only to free, but also paid analytics. You can pay a lot for it and not get any benefit. Finally, there is the possibility of using an analytical review that is knowingly false. This happens when the analyst, for one reason or another, is interested in guiding traders down the wrong path.
Best practices for using third-party analytics
In order for the analytics to be really useful, the trader needs to remember the following.
No analytical review can claim to be 100 percent accurate.
The best results can be obtained by combining third-party analytics with your own market analysis.
A paid analytics subscription does not guarantee its high quality.