A trader’s FX charts is their bread and butter. To put it simply, an FX chart is what compares a currency pairing. It measures two currency pairings and tells the trader exactly how they’ve been doing over time. They can come in the form of line graphs, bar charts, and a number of other chart types. Each trader tends to have a preference. And comparing currency pairings is imperative to making a profit in thelandofForextrading.
What is Fundamental Analysis?
Fundamental analysis is the act of using things such as current news and the economic conditions to make an informed decision on one’s next move. Technical analysis, on the other hand, is the act of using current trends and centres primarily on charts and graphs. Fundamental analysis is easy to use and just requires a little bit of research.
What Other Info Should be Considered?
There are many broker tools to take advantage of, for instance – I use this set of Alpari FX research tools. Remember, it’s imperative to be aware of the latest market commentaries or today’s breaking news stories (which you can do using streaming channels such as Squawk). It’s important to take into account the fact that countries like Italy, Spain and Greece are not having the best of times, in terms of the power of their currencies, but everybody knows about this – that’s why currency fluctuations can be so volatile. It’s like a herd stampeding! One needs to really take advantage of the stories that nobody else knows about – this is where trading intelligence bears its fruit. The old adage whips itself around your face again to say “it aint what you know, it’s who you know!” If you’re in touch with the high execs at major banks – there’s most likely gonna be some leaks somewhere along the road. Financial FX trading, online or otherwise, can be leveraged by insightful insider knowledge. But as someone might be willing to give you a tip at horse racing – is their word / trading advice worthy enough to trust with hardcore investment?
The fact is that many of the events that impact the value of a currency against another just aren’t reported by the major news institutions. This is even truer if a lesser known currency is being traded, such as the Thai Baht. That’s why various research apps should be downloaded or installed on computers and mobile devices in order to save the trouble of hunting down these hidden events.
Getting all those juicy bits of news is vital to the successful implementation of fundamental analysis.