Forex Trading – Analysis

Forex Trading - Analysis

Fundamental Analysis

• Fundamental analysis, in forex trading strategy, considers economic and non-economic circumstances and events that affect the general sentiment of the market.
• The “fundamentals” are considered causal factors that determine why things are happening. Unfortunately however, in many cases even the experts can’t agree on the impact these factors will have on the way the market will respond.

What Affects Currency Exchange Rates ?

• Many things can affect currency exchange rates, and interest rates are one of the major factors. The smart institutional money is very liquid and it will flow to whichever economically stable and politically secure region in the world is paying higher interest to bond and Treasury bill investors.
• When money flows into a country, it has a natural strengthening influence on the relative value of that country’s currency.
• As fundamental analysts consider the “why” of market behavior, technical analysts focus on the “when”. Another way of putting it is if the fundamentals represent the “cause”, then the technicals represent the “effect”.
• It’s helpful for traders to be aware of the fundamentals, and our weekly economic announcement calendars and market overviews provide great help in this area. However, for most traders, technical analysis is the preferred forex trading strategy to approach the day-to-day trading in the Forex market.

Technical Analysis

• Technical analysis has been around for a long, long time, but now, thanks to today’s sophisticated technology and data processing power, technical analysis has become the mainstream forex trading strategy.
• The Forex market in particular is an ideal market to apply technical analysis as it operates 24 hours a day and has virtually limitless liquidity.
• The key is keeping it simple and efficient and that’s where we really shine.

How Do We Know When to Buy and When To Sell ?

• We have now made it simpler and faster for beginners as well as experienced traders to understand when to get in or out of their trades by employing our proprietary “Trend Following System”.

Our Proprietary Trend Following System

• Our proven trading system continuously processes enormous amounts of data so traders don’t have to.
Technical indicators are programmed to determine whether big money is moving in or out of the market.
• The system instantly alerts traders to the timing of when a trend is about to emerge or reverse – critical information for making money in the market.

What is a Trading System ?

• There is more to successful trading than just understanding the timing and direction of the market. A comprehensive and systematic approach to trading includes a thorough understanding of risk management procedures and money management principles
• Investors and traders are often handicapped by their own emotions. Fear and Greed can sabotage their decision making process and have a negative, sometimes crippling effect on their activities.
• That’s why we focus extensively on ensuring traders understand the psychology of trading, the protection of capital and the importance of establishing a personal trading plan, all essential for successful forex strategy.
• Trading is not for everyone. Traders should never trade with capital they can’t afford to lose. There’s always risk involved in any kind of trading and Forex is no different.
• With proper training and support, however, traders can learn the steps to success to produce positive results while defining and managing the risk, and keeping it at a predictable and acceptable level.
• Confidence and competence are both gained through the extensive use of forex demo accounts so that solid trading skills can be developed before traders take risks with real money.

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