If you want to make a profit, the first step is to know market analysis. There are two types of analysis for capital market and money market analysis. Fundamental analysis and technical analysis. Fundamental analysis is the examination of macroeconomic data, political events and factors such as floods, earthquakes, wars, etc., which have economic effects, predicting the future rate and understanding and calculating systematic risk. In fundamental analysis, no attention is paid to the upward or downward movement of the asset price. Rather, the focus will be on identifying the intrinsic value of the asset through the factors affecting it, but in technical analysis, by examining charts and with the help of mathematical relationships, it seeks to predictprices and calculatepossible risks, and the focus is on prices.
The simultaneous use of these analyzes can bring us better results**.**
It is not enough to know the basics concepts of Forex trading alone. There is so much more to learn and improve on as you continue trading to stay competitive. Banks, financial institutions, and other professional retail traders are constantly learning and improving their trading strategies, so should you.
I agree @Gaga22. You can spend all day studying market/fundamental analysis and it won’t make the slightest bit of difference to your profits. Technical analysis starts off interesting cos you can start to see some correlation between what you think might and what does happen, then you realise that’s not the holy grail either cos it gives you zero edge over a ton of cleverer people with algos and physics degrees who do it way better than you. So it’s really time to change the record, cos I’m bored with all this generic stuff that doesn’t work.
It’s ALL about price action and money management. That’s it.
The occurrence of financial events makes technical analysis more difficult, and this also applies to fundamental analysis. However, this type of analysis helps us to know and understand the market better. Other analyzes such as artificial intelligence and algorithms may be used more than in the past.
In fact, using price action is a form of technical analysis because it ignores the fundamental aspects of the assets and prioritizes its price history.
Education. The more you know, the better. No doubt, basic concepts are important. But that’s not enough! To understand the dynamics of the market, you should constantly stay updated with the market, so you can adapt to those changes. That has been my aim ever since I got into trading myself.
You need to find out a sustainable way here! Making random profit is not a big deal here, but consistency the main issue! So, until you are an inconsistent trader, don’t invest your money!
No doubt on it, even it’s much better option that the demo; so it would be really great if new traders start their learning process by simulation trading!
Yes, the first step in making a profit in the market is to learn and practice trading and market analysis. Powerful market analysis provides useful insight of the market and assists you in making money.
No doubt on it! Market analysis is the 1st job; traders need a clean knowledge on technical & fundamental analysis! Chart reading skill (technical analysis) is such a powerful skill here!
I think, having a good trading skill is the main priority! Making consistent profit is not an easy option here! Ii takes tons of energies, efforts and more!
True, new traders need to start with the basic, and honestly basic isn’t enough here! So traders need to gather more advantage knowledge to be a consistent player here!
What do you prefer most: technical or fundamental analysis? there are many controversial opinions about their strengths and weaknesses, hard to make choice…
I think technical analysis with very disciplined money management for when you get a macro-shock type world event that truns your position on its head. It’s not that I think fundamental analysis is not useful - it’s an incredibly powerful tool, I just think individual retail traders have no chance competing with the investment banks so it’m impossible to get an edge - that’s the only reason I don’t bother with research/true-pricing etc.
@Blue2 You are correct. The first step toward market profitability is understanding market analysis. It is an important skill for traders to have because it is the only thing that can assist you in predicting the next move in the market.
I admire this information which you have posted thanks, was a valuable read. But I think the right trading plan, strategy, and risk management is also a must in trading.
learning Forex is a process . process that we the traders should continue with good effort , but for that need a great level of patience , so the beginners always try to skip the learning process.