Forex is a way to analyze the movement of the national currency with the help of economic data. There are several types of market analysis – fundamental analysis, technical analysis, wave analysis, and others. In this article, we will tell you only about the first two analyses: fundamental analysis and technical analysis. Some people believe that they are the basic types of analysis of market trends.
Many people constantly debate which of these two analyses are better, but to tell you the truth, you need to know a bit about both. So, let’s look at each analysis separately.
Fundamental analysis
Fundamental analysis is a method of forecasting price changes based on analysis of current economic conditions. In other words, you see, whose economy is growing, and whose economy is falling. The idea behind this type of analysis is that, if the economy grows, the national currency will also rise.
Technical Analysis
Technical Analysis forecasts price changes for the future on the base of the analysis of price changes in the past. It is based on the analysis of time series of prices and schedules – “charts”. Such instruments as the trading platform: trend lines, Fibonacci retracement levels, support and resistance levels, etc can be used in technical analysis. The idea is that people can look at historical data of price movement and can determine where the price can go in the future and from which level to start. Looking at the graphs you can identify trends and a variety of formations that can help you to find good trading opportunities for market entry.
The most important thing you’ll ever learn in technical analysis is the trend or direction of price movement. “The trend – is your friend.” The reason is that you are much more likely to make money when you can find a direction or trend. Technical analysis can help you to identify the price trends in its earliest stages and therefore can provide you with very profitable trading opportunities.
Friday, September 30, 2011
Thursday, September 29, 2011
Forex Market Benefits
Forex market is one of the most popular currency exchange markets in the world for reason. People choose confidence, reliability, and safety. Forex market offers many opportunities. What is more, benefits are vivid and real. Many advantages can bring great income if wisely used by people who know how to speculate the currencies.
Liquidity
Forex market is immense in terms of size and money overturn. Situation on the market directly depends on the factors which cause economical, political or even social changes in various countries. Trillions of dollars circulate the market every day. People sell and buy currencies for different purposes. All these create conditions for the highest liquidity in the world. There is no such big market on Earth. National Banks, big corporations, serious businesses use forex for currency exchange and other transactions.
Ability to trade any time of day or night
It is difficult to find a job which you could do any time you like. However, forex market is open 24 hours a day and 7 days a week. It means that trader from any corner of the world can enter the trade at any market (London, Tokyo, New York) that is open the minute he/she in online. It is unbelievable opportunity as it helps to manage your time in the way you like.
High profits
High leverage is extremely beneficial. It allows traders to change instruments and to use various combinations (for example margin account). The top leverage for stock is traditionally2:1. Forex market allows 500:1. Does it sound unbelievably? However, it is true.
Forex market is the best place for independent and hard-working people. Despite all advantages and benefits one has to acquire many trading skills, to get to know how to deal with various trading situations and to receive income. Knowing forex market secrets helps to achieve the best results and to progress. Every trader should devote time to learning and development of the skills.
This is important, don’t forget that we live in the world where info quickly enhances the quality of our life.
Liquidity
Forex market is immense in terms of size and money overturn. Situation on the market directly depends on the factors which cause economical, political or even social changes in various countries. Trillions of dollars circulate the market every day. People sell and buy currencies for different purposes. All these create conditions for the highest liquidity in the world. There is no such big market on Earth. National Banks, big corporations, serious businesses use forex for currency exchange and other transactions.
Ability to trade any time of day or night
It is difficult to find a job which you could do any time you like. However, forex market is open 24 hours a day and 7 days a week. It means that trader from any corner of the world can enter the trade at any market (London, Tokyo, New York) that is open the minute he/she in online. It is unbelievable opportunity as it helps to manage your time in the way you like.
High profits
High leverage is extremely beneficial. It allows traders to change instruments and to use various combinations (for example margin account). The top leverage for stock is traditionally2:1. Forex market allows 500:1. Does it sound unbelievably? However, it is true.
Forex market is the best place for independent and hard-working people. Despite all advantages and benefits one has to acquire many trading skills, to get to know how to deal with various trading situations and to receive income. Knowing forex market secrets helps to achieve the best results and to progress. Every trader should devote time to learning and development of the skills.
This is important, don’t forget that we live in the world where info quickly enhances the quality of our life.
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