Understanding Fundamental & Technical Analysis Before You Trade Forex
Forex trading over the years has become popular among the investing public. After the recent stock market crash, people are turning towards forex trading in droves. Forex Brokers are also marketing aggressively to increase the number of their clients.
According to these gurus, forex trading is easy. Buy the course and everything will be explained in an easy and step by step manner. These gurus are only selling their courses. No doubt, internet has made forex trading possible from anywhere in the world. But is it easy.
But nobody will tell you that out of 100 new traders; only 5 survive in the long run. Forex markets are brutal and unforgiving. Only the best will survive. 95 of the new traders will lose their money and quit in a few months or maximum one year.
Why do so many new traders fail? Simple; they dont try to educate themselves properly about forex. They will read one or two eBooks. The gurus will tell them very simple things. They will believe the gurus. Take the plunge in the stormy waters and drown in a short time.
You need to understand how the forex markets work. What are the economic factors that move the currency markets? How interest rates, GDFP growth, unemployment ratios affect the currency markets. As long as you dont develop this gut feeling, you should not start trading forex.
It is essential for you to understand fundamental and technical analysis before you take your plunge into the brutal forex markets. Fundamental analysis is based on the study of the underlying factors that affect the forex markets. It predicts the movement of the currency markets in the long term.
Technical analysis is based on the study of the past behavior of the prices and their affect on the future movement of prices. It is also know n as charting. Technical analysis depends on the understanding and use of lots of charts and indicators.
Understand the indicators that are used extensively in Technical Analysis. Master them in order to determine the short term and long term expected behavior of the market. Technical analysis will also tell you what the best entry is and what the best exit point for a particular trade is. It is essential that you master technical analysis if you are really serious about forex trading.
If you have been trading equities before then, you can make your switch to forex trading much faster. But you can only succeed at forex trading if you make it your passion. Learn everything you can about forex trading. Dont hesitate to learn new forex strategies and practice them. Once you take forex trading as your passion, only then you can become a winning forex trader. - 23199
According to these gurus, forex trading is easy. Buy the course and everything will be explained in an easy and step by step manner. These gurus are only selling their courses. No doubt, internet has made forex trading possible from anywhere in the world. But is it easy.
But nobody will tell you that out of 100 new traders; only 5 survive in the long run. Forex markets are brutal and unforgiving. Only the best will survive. 95 of the new traders will lose their money and quit in a few months or maximum one year.
Why do so many new traders fail? Simple; they dont try to educate themselves properly about forex. They will read one or two eBooks. The gurus will tell them very simple things. They will believe the gurus. Take the plunge in the stormy waters and drown in a short time.
You need to understand how the forex markets work. What are the economic factors that move the currency markets? How interest rates, GDFP growth, unemployment ratios affect the currency markets. As long as you dont develop this gut feeling, you should not start trading forex.
It is essential for you to understand fundamental and technical analysis before you take your plunge into the brutal forex markets. Fundamental analysis is based on the study of the underlying factors that affect the forex markets. It predicts the movement of the currency markets in the long term.
Technical analysis is based on the study of the past behavior of the prices and their affect on the future movement of prices. It is also know n as charting. Technical analysis depends on the understanding and use of lots of charts and indicators.
Understand the indicators that are used extensively in Technical Analysis. Master them in order to determine the short term and long term expected behavior of the market. Technical analysis will also tell you what the best entry is and what the best exit point for a particular trade is. It is essential that you master technical analysis if you are really serious about forex trading.
If you have been trading equities before then, you can make your switch to forex trading much faster. But you can only succeed at forex trading if you make it your passion. Learn everything you can about forex trading. Dont hesitate to learn new forex strategies and practice them. Once you take forex trading as your passion, only then you can become a winning forex trader. - 23199
About the Author:
Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in options futures and forex trading. Read about Forex Profit Accelerator. Know more Forex Strategies.
posted by X - Men @ 8:24 PM
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