Predicting vs Forecasting Price Movements
Even though predicting and forecasting may sound similar, these 2 concepts can help you trade in different ways:
Forecasting is an estimate of the value of future prices based on past data and reliable information. The judgment of the value of money is based entirely on following a process and a formula.
Prediction is, to some extent, a combination of forecasting and premonition of price movements. Some traders even trade more based on their intuition.
Generally speaking, there is only a small difference between the meanings, but when it comes to trading, there is a big difference between the two. When you are emotionally involved and feel confused about the current open trades, you are most likely "predicting" your trades rather than "forecasting."
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