Forex Currency Markets
You may think trading in the in Forex Currency Markets is an entirely different ball game than trading in the stock market. But, they both rely on many of the same rules. The same two principles still apply. Whether you’re trading in stocks or currencies, both technical and fundamental analysis still applies.
It’s easy to see how technical analysis, i.e. analyzing charts to identify patterns and trends that may hint at what a market will do in the future clearly applies to both stock and currency trading, how about fundamental analysis?
Fundamental Analysis of Forex Currency Markets
Unlike companies, you can’t check a country’s balance sheets, so you have to find other ways to conduct fundamental analysis. With a company, you’d look at factors like financial statements, management teams and competitive advantages. And you can do the same to try to determine currency movements if you think along the same lines for a country. There is a wealth of information available in economic reports which can help you predict whether currency values are likely to move.
Tracking Forex Market Indicators
To make sure you keep track of indicators and when they are due to be released, keep an economic calendar on hand with a comprehensive list and don’t wait until a report has actually been released – often markets will move in anticipation of news rather than waiting for the details. Remember the old saying “Buy the Rumor- Sell the News”.
See Also:
- Using Forex Charts
- Forex Trading Software
- Determining Currency Trends in the Forex Market
- What are You Really Buying in the Forex Currency Market?
- Do You Know Your Currency Pairs?
- Elliott Wave Forex Trading Video: It’s Not The News That Matters
- A Basic Guide To Forex Trading
- More Forex Articles
- Economic Trends
About the Author:
Liz Hands is a financial blogger who writes for currencyconverter.co.uk
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