Currency Market

Currency Trading

Currency Trading

Enter currency trading

There are three main approaches to trade in the money market:

1st key
2. technical
3rd game

Let's talk focus on gambling. This is the "trade" of those who "think" that, for example, the value of the euro to fall.

Currency Trading, Currency Market, Forex,

They not even try not to analyze the market and have no strategy. Forex players always lose in the end. It is even possible to get to know forex players who have not had a single loss in a month or two and are very proud of their "skills". Most losers experience is to see your account grow at a certain time. To succeed in forex trading means that it takes to be profitable in the long term. For example, if you sign up today, and for three or four years is the result, it can be called a good trader.

In fact, there is nothing wrong with the "currency pastime" and "play" on the euro, the dollar or Vietnamese dong, if you are aware of what you are doing. For those who would like to see currency trading is more than a game of chance, the other two methods are satisfactory.

Fundamental analysis

Fundamental analysis is a way of understanding the market following the economic political and social forces that determine supply and demand. In other words, follow the state in which the economy going and that is the Faculty of Economics in poor condition. The idea is that if the economic situation is good, then the currency of that country strong because other states have more confidence in that currency.

Currency Trading, Currency Market, Forex,

 For example, the euro has strengthened since the Member States of the euro area "I stood." Fundamental analysts believe that: As the business climate improves, the ECB (European Central Bank) will raise interest rates to control inflation and as a result, the euro will continue to strengthen. Therefore, I will buy the euro.

There is certain economic news that is strongly influenced by the money market, for example. PFN or non-farm payroll (ie. The average salary in the private sector). But we'll get to later.

What type of analysis is better? Fundamental analysis?

We have already mentioned that the "fundamentalists" and "technicians" think they are better than each other. Devotees of fundamental analysis state that all the foreign exchange market depends on the (basic) basic economic indicators and data, and that any prediction prices offset by technical analysts based on random play.

Moreover, technical analysts (TA) claim that traders have to pay full attention to the cards to predict exactly when certain price psychological level. Therefore, as they say, it is possible to predict the price movement charts and indicators analysis. (We'll talk indicators below) One thing is certain: you should not be unilateral, however, the use of both methods.

In fact, we believe it is very difficult for a trader to periodically prepare datalink, deep fundamental analysis of a currency pair. Therefore, most of the "fundamental" analysts where you will find based on the analysis by analysts working for large institutions in the forex market, as well as large brokerages, etc.

 Several reports and studies published in the prediction based on various types of economic models. It is very easy, especially for novice traders get so hung up on details, and at some point, they realize they cannot decide and do not know what to do. This is called analysis paralysis. In such cases, most forex traders are turning to technical analysis in order to decide on the next step.

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