Learn forex basics

Learn forex basics

How to analyze forex always departs from the two approaches are the most commonly used analysis in forex trading activities, namely fundamental analysis and technical analysis. Both approaches this forex analysis is an important base that must be owned by a foreign player. Therefore, forex trading activities are always closely related to the work of the analysis in the right forex decisions bore. The right decision will prevent you from undesirable trading losses.

Basically, everyone has different trading characteristics between each other. This is caused due to forex analytical activities depends greatly on the individual concerned. Forex analytical ability cannot be obtained instantly, because it will appear along with the number of flying hours and a person's discipline in learning forex trading. The real trading experience will be whipped up a person to increase the capacity of playing himself in forex trading.

How do I correct forex analysis?

To find out how to analyze forex that will be useful to you in trading, compulsory for you to master both basic forex analysis here:

1. Fundamental analysis of Forex

Fundamental analysis is a way of seeing the market through economic conditions, social circumstances and political conditions that affect supply and demand. For example, how the economic conditions that exist now? Whether healthy or ill? The basic principle in the fundamental analysis is that if the economy of a country with good, then their currency would also be nice. And will further bring impact on confidence which increases from other countries against these currencies. This is the basic fundamental analysis that must be understood.

Note the following illustrations:

The value of the us dollar continue to rise because the condition of the u.s. economy are strengthened or improved. Thus, interest rates can be higher for controlling the inflation rate. This brought the value of the dollar will also continue to be strengthened.

The illustration above is an example of how a fundamental condition (economic conditions) can affect the value of the currency of the country concerned. Thus, in a simple fundamental analysis in forex trading is a way of analyzing the market through the economic conditions of the countries concerned. You have to be a lot of practicing in this analysis, because the way a good forex analysis also includes an approach fundamental analysis in forex decisions.

2. Technical analysis Forex

Technical analysis is a way of studying price movements seen from the mathematical analysis. You'll find graphics or mathematical calculations in this analysis. What-what is analyzed?? Historical data and current price movement can be analyzed to provide projections or predictions on where prices will move up, down, or turn around. In other words, technical analysis is seeking a "trend". By identifying trends or patterns, it will be able to help you to find the best trading opportunities. In a lot of field experience, the ability to know the trend will be very beneficial to Your winning in forex trading.

How to analyze forex fundamental and technical wear

Mastering how to analyze forex it is best to master the combined approach of fundamental analysis and technical analysis. This is the key to becoming a master forex analysis is reliable. The analysis by combining both effectively, then you will last longer in the jungle of forex trading.

Note the following illustrations:

In forex trading, at one time you look at the graph (technical analysis) and found an opportunity of trading opportunities are very good and will be favourable. From technical analysis to perform mathematical calculations on the graph above, You think that this is a golden opportunity that should not be missed. Then, with the confidence you continue to insert order transactions into brokerage. With sumringah Your face then looking forward to the advantages that already seemed in sight. After some time had passed, the sudden price movements become opposite and move towards another reply, then you see the losses of 40 pips. It turns out there is just a reduced rate of interest on the currency you hold so that the value of the currency is weakening, and now everyone in the market is moving to remove these currencies (against all Your chart analysis).

You might think that the illustration above is too excessive. But the question that arises is whether you can guarantee the State as in the illustration above won't happen again?

It turns out if you make time to do fundamental analysis first before entering the order transaction, then a bad story above may be avoided. With fundamental analysis, You might find things that are not owned by technical analysis, including a review of socio-political conditions or events that occurred.

The conclusion

Thus, combining both technical and fundamental analisas effectively will be very beneficial to you in your forex trading activities. How to analyze forex based on a balance between fundamental and technical conditions conditions will keep you last longer in trading. Therefore, there is no dominant elements governing the market in full. The market is always looking for dynamic and moving the point of balance between fundamental and technical.