guys i learned a lot of knowledge from babypips school and other books, but i dont know from where i can start trading and put all of this knowledge into action , how to put technical analysis and fundamental analysis together in one trade
well, have you opened up a demo account yet?
THese are two very different forms of analysis.
Technical analysis is purely concerned with analysing price movements in order to derive some kind of underlying structure or “story” of what price is currently doing compared with what it has been doing - and, on the basis of that analysis, then attempting to project what it might be doing next.
Fundamental analysis, on the other hand, is concerned with identifying the forces and factors that are creating those movements in prices, such as Central Bank fiscal/monetary policies, economic growth, inflation rates, interest rate changes, geo-political and other risk factors and so on.
If you wish to combine these in your trading then you could, for example, build your view based on fundamental factors and decide what you believe should be happening (this is obviously and inevitably a long term view and not a day trading scenario!) and then use your technical analysis to identify if and when the price movement is actually starting to confirm your view.
Timing is one of the hardest aspects of fundamental analysis and is made even more difficult by the fact that a currency pair is affected by fundamental factors in both the currencies in the pair and which one is dominant at any one time. So by waiting until your TA confirms the movement may well have started as you believed it should you avoid premature entry and even a totally wrong entry. In the same way, your TA can help identify when the move has paused or reversed.
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first try to evaluate your knowledge and proficiency level with demo trading accounts. then try to work with smaller trading lots to keep yourself familiar with the forex market. once you are able to successfully implement your learning start bigger lots. it is not necessary that you have to use both FA and TA in one trade.
You are on the correct path of success, my friend. You have made the best decision of studying and analyzing the fundamentals of forex trading. Now, you should come with a strategy which is suited with your trading style. Am i right guys?
Forex market is the world’s largest market and it has some unique features as well. One of those features is the technical aspect of the Forex market. Here, you require to grip on the technical analysis as well along with fundamental analysis. So, practice well before entering the market!
That’s the point; we traders need to make a combo trading system based on these 2.
Forex market is a technical market where you have to practice your knowledge on the live market in order to strengthen your abilities and skills. Demo account is the best option for this practice which helps to gain confidence. Am I right guys?