Forecasting techniques make it easier for a trader to develop a directional bias, anticipate changes in a trend, and pre-plan strategies. When we develop a *bias*, it must be understood that it is solely for the purpose of planning a strategy to implement if a certain scenario unfolds.
We must be careful not to attach too much energy and emotion to a bias for the purpose of being *right*. Our goal is to make money by planning for possible scenarios – regardless of a market direction.
Analyzing market direction and incorporating forecasting techniques does not seem easy at first, and as such, is ignored by many traders. It takes some time and effort to learn. However, the more aggressive traders tend to gravitate towards these methods, knowing full well that hard work and better tools will pay off in the long run.
The serious and committed trader that is willing to put in the extra time and effort to prepare for opportunities well in advance uses the art of forecasting to gain an edge over the majority of traders looking for an easy way out. Once basic forecasting techniques are learned, it becomes an easy exercise to identify low risk opportunities, available every single trading day.