There are two approaches to trade forex. We have technical analysis and fundamental analysis. Technical analysis is all about using some indicators to analyse market in order to know when to enter trade and exit trade while fundamental is using news to trade.
What do i mean by using news to trade forex?
Let me explain, every countries in the world has some certain factors that drive their economy either backward or forward. So when these factors happen and it favors a particular country automatically it affects the currency strength of that country.
Let's for example an economic factor like "employment" We all know that employment rate of a given country determines its fortune. High employment will surely strengthen an economy while high unemployment rate will do otherwise to an economy. So, whatever happens to those economic factors/indicators will automatically have effect on strength of the currency of the country.
Since this is a known fact and forex trading is all buying and selling of currencies. One of the key approach to it is what is called "fundamentals" using economic indicators to analyse forex market.
What of Technical analysis?
I 've mentioned it above that is all by using some calculated or formulated indicators to analyse forex market. Examples of that are moving averages, parabolic sars, bollingar bands, relative strength index and so on. The technical indicators are so many, it depends on the trader to choose those ones that would be useful for him to analyse his trading in forex.
Having known the approaches to forex trading, there are still some other basic things to be known.
What are they?
I will call them terminologies in forex trading. They are Lots, spread, leverage, trailing stops, stop loss, automated trading, order,etc.
My intention on this platform is to share the idea of trading forex with ease. Because trading forex both from the angle of technicals and fundamentals is not a child-play. It requires a lot of experience and hardworking.
If you can just stay tune with this, i will show you the best and fastiest way of trading forex that would bring a lot of profit. Trust me.
No comments:
Post a Comment