Fundamental Analysis The whole basis of trading Forex is to - TopicsExpress



          

Fundamental Analysis The whole basis of trading Forex is to trade based on the predictions you have for the currency or commodity you are trading with. To the best of your knowledge you expect an uptrend or downtrend and make a decision as to what you will buy or sell, and hope your prediction is fulfilled in order for you to make some wins. Traders dont always rely on just good instinct, and vast knowledge, many different tools can help traders make their decisions more accurately and increase their chances in making wins. Two widely used methods to help this process are the Technical Analysis and the Fundamental Analysis. You have probably seen a lot of technical and or fundamental analysis on most Forex websites, but not everyone understands exactly what they are supposed to be or how to use them. Fundamental analysis is forecasting the future of prices and price movements, based on not the past, but on events which are yet to happen. It is based on studying current events, and predicting the outcomes they will have on prices, from political changes, to environmental movements, and natural disasters. When studying the world around you and all its changes, you can start predicting how each movements is likely to impact the Forex market and Forex prices. Fundamental Analysis is also not easy on non-experts, in fact it can even be harder than technical analysis, because one does not simply read a chart, but has to put together all unrelated factors from around the world, which could affect price movements. Fundamental analysis alone is unreliable, as it is solely based on prediction and no patterns or factors, so it is often used in conjunction with technical analysis to form an all rounded opinion about the Market and make better trades. fxnet/news/fundamental-analysis FxNet Ltd is a global, fully licensed Over the Counter (OTC) online Forex and commodities broker, regulated by the Cyprus Securities and Exchange Commission (CySEC). FxNet is located in Limassol Cyprus. FxNets mission is to reach and retain traders around the globe through exceptional customer service, integrity and continuous innovation that will provide our clients with simple, exciting and secured trading platforms.
Posted on: Thu, 23 Jan 2014 08:52:50 +0000

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