In equity markets it is relatively easy to understand what influences stock prices. If the sector that stock of our choice belongs to is doing well, if earnings are meeting the expectations, our stock will generally do well. In currency markets on the other hand there are many more aspects that have the impact -if there is a labor strike in France, if a bomb explodes in the middle East, if ECB reduces interest rates, if the weather in South America is bad, anyways there are so many factors that influence currecncy rates that it is not possible for an individual trader to keep track of all of them, you would go crazy. Therefore you have adapt the credo “Anything can happen at any time and I will have to adjust accordingly.”
What we need is the ability to predict the price over the next few days/weeks. You have probably noticed how sometimes even the best news can not lift the dollar and the slightest hint of a bad news puts it into a nosedive and vice verca….In those situations you need to know where the sentiment is and economic funamentals have very little importance.
Problem that most would be traders encouter is a lack of appropriate literature. Real world is inhabited with real people. And real people make unexpected decisions. Welcome to the world of currency trading