If you have already watched the Forex Training Videos then you should know what Forex market is and what it is about. If not, please do it. There are five essential aspects of the Forex market which a beginner trader and an experienced one as well should be aware of:
Understanding and mastering these aspects of trading are essential to organize your Forex trading experience.
Fundamental analysis is the process of market analysis which is done regarding only "real" events and macroeconomic data which is related to the traded currencies. Fundamental analysis is
not used only in the Forex market but it can be a part of any financial planning or forecasting. Concepts that are part of Forex fundamental analysis: overnight interest
rates, central banks meetings and decisions, any macroeconomic news, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making Forex market
forecasts. In theory it alone should work perfectly but in practice it is often used in pair with technical analysis.
Technical analysis is the process of market Analysis which relies only on market data numbers - quotes, charts, simple and complex indicators, volume of supply and demand, past
market data, etc. The main idea behind Forex technical analysis is the postulate of functional dependence of the future market technical data on the past market technical data. As well as with
fundamental analysis, technical analysis is believed to be self-sufficient and you can only use it to successfully trading Forex. In practice, both analysis methods are used.
Even if you can master every possible method of market analysis and will make very accurate predictions for a future Forex market behavior, you will not make any money without a
proper money management strategy. Money management in Forex trading (as well as in other financial markets) is a complex set of rules which you should develop to fit your own trading
style and amount of money you have for trading. Money management plays a very important role in getting profits out of Forex trading; do not underestimate it.
While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex trader, you also need to control your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing act between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keeping to their trading strategies rather to their spontaneous emotions. Problems you will have to deal while being a professional Forex trader:
Every Forex trader needs tools to trade. One of these tools which are essential to trade is a Forex broker and especially for Internet user an online Forex Broker which will provide real-time market information to the trader and bring his orders to the Forex market. While choosing a right Forex Broker you should have the following things in mind:
Risk Disclosure: Forex Directory will not accept any liability for loss or damage as a result of reliance on the information contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets. Currency trading on margin involves high risk and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.