TRADER MUST MASTERING THIS!!

Foreign exchange (forex) trading is known as an active financial strengthening activity. Trading is different from investing whose activities tend to be passive. Even so, both forex trading and forex investment are considered capable of bringing promising benefits. Many people have started to be interested in learning forex trading in order to increase their financial strength in the future.

Everyone who starts trading wants to become a successful trader. But many novice traders lose a lot of money in a short time, usually because of a wrong move. The first step for traders learning to trade is to master a few of these!

Technical Analysis

Technical analysis is an analysis technique commonly used by traders to assist buying and selling decisions in trading forex, stocks and commodities. This analysis usually analyzes the rise and fall of prices within a certain time span and buying and selling.

Forex technical analysis is a method of analysis used to predict the direction of future price movements by looking at price data for the previous period that has been formed and displayed on a chart. In this case traders must understand the charts that are commonly used in technical analysis first so that traders can find out price movements up and down.

Fundamental Analysis

Forex fundamental analysis is basically a non-technical analysis method that refers to sources of information that have an indirect effect on currency price movements in the forex market such as the economic or socio-political conditions of a country. Unlike the method applied to technical analysis which takes information from price charts, forex fundamental analysis focuses on economic factors.

Forex fundamental analysis is also more often used for long-term analysis because it takes a long time to understand market dynamics. A trader needs time to collect some of the fundamental analysis indicators needed to analyze the market. Long-term analysis is also considered safer because the information obtained is much more complete and tends to form causal patterns that are easier to read.

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