Trading and Diagrams Types of Trading

Types of Trading
Congratulations! You got through the pre-school and are ready to begin your first day of class. You do not go through the Pre-School right? Now, you learned a little history About Forex, how it works, what influences the price, blah blah blah.
We know what you think ... BORING! Show Me How To Make Money EVER!
Well, say no more my friend, because that's where your journey as a trader Forex begins ...
This is your last chance to go back ... Take the red pill and you are back where you were and you will forget all this. You can return to live your life in your category average 9-5 job and work for someone else for the rest of your life.
OR
You can take the green pill (green for money! Yeah!) And learn how you can make money for yourself the most active market in the world, simply by using a little brain power. But remember, your education will never end. Even after you go to school-forex.fr, you must constantly pursue as much knowledge as you can, so you can become a true Master Forex! Now pop the green pill, wash it with some chocolate milk, and enter your lunchbox ... Forexest School now in session!
Note: the green pill was made with a serum brainwashing. You now obey everything we tell you to do! Mwuahahaha! Mwuahahaha! <- <- Evil laughTwo types of exchange
There are two basic types of analysis, you can approach the Forex:Fundamental analysis ## Technical analysis.
There has always been an ongoing debate to verify that the analysis is better, but to tell you the truth, you need to know a little of both. So let's break each one down and then come back and put them together.Fundamental analysis
Fundamental analysis is one way of looking at the market due to economic forces, social and political influence supply and demand. (Yada yada yada.) In other words, you look at where the economy is doing well, and whose economy sucks. The idea behind this type of analysis is that if a country's economy is doing well, their currency will be as well. This is because the higher a country's economy, the countries of the confidence of many others in that currency.
For example, the U.S. dollar has gained strength because the U.S. economy is gaining ground. As the economy improves, interest rates higher for the control of inflation and, consequently, the dollar continues to rise. In short, it is basically what fundamental analysis is.
= GOOD ECONOMY UP THE CURRENCY
BAD ECONOMY = FALL OF THE CURRENCY
Later in the course, you will learn about specific news events to drive currency prices the most. For now, just know that the forex fundamental analysis is a means to analyze a currency by the strength of the economy of this country.Technical Analysis
Technical analysis is the study of price movement. In short, technical analysis charts =. The idea is that a person can look at historical price movements and, based on price action, may determine at any level where the price will go. Looking at the graphs, you can identify trends and patterns that can help you find good trading opportunities.
The most important thing you can learn in technical analysis is the trend! Many, many, many, many, many, many people have a saying: "The trend is your friend." The reason is that you are much more likely to make money when you can find a trend and trade in the same direction. Technical analysis can help you identify these trends in its infancy and therefore provide you with highly profitable business opportunities.
Now I know how you feel about yourself, "Damn, these guys are smart. They use words like crazy "technical" and "fundamental" analysis. I can not learn this stuff! "Do not worry too much. Having completed the school of Forex, you too will be equally .... uhmmm ... "smart? "We.
By the way, do you think the green pill kicking in yet? Bark like a dog!So what type of analysis is the best?
Ahh, the question to one million dollars. Throughout your career as an aspiring Forex trader, you will find strong advocates of trade for both fundamental and technical. You have those who argue that it is only the fundamental principles that drive the market and found that all models on a map is simply a coincidence. On the other hand, there will be those who argue that it is the technicals that traders pay attention to and because traders pay attention to the structures of the common market can be found to help predict future price movements.
Do not be fooled by these extremists on one side! ... There is no better than the other ...
To become a true master Forex, you need to know how to effectively use both types of analysis. Do not believe me? Let me give you an example of how focusing on one type of analysis can be turned into a disaster.

    * Say you look at your cards and you find a good trading opportunity. You get all excited thinking the money is going to be raining from the sky. You say, "Dude, I've never seen a more perfect trading opportunities. I love my charts. "

    * You will then enter your trade with a big fat smile on his face (the kind where all your teeth are showing).

    But wait! Suddenly, the trade makes a move 30 pips in the opposite direction! Little did you know that there was a decrease in interest rates for your money and now everyone is trading in the opposite direction.

    * Your big fat smile turns to mush and you begin to feel angry against your graphics. You throw your computer on the floor and begin to spray. You just lost a lot of money, and now your computer is down. And all because you have completely ignored the fundamental analysis.
(Note: This was not based on a true story. This did not happen to me. I've never been this simple. I've always been a businessman .... Overused sarcasm chip, I think you see in the picture)
Ok, ok, if the story was a bit too dramatic, but you get the point.
Forex is like a big ball of energy flowing, and the interior of this ball is a balance between the fundamental and technical factors that play a role in determining where the market will go.
Remember how your mother or father used to say as a kid too much anything is never good? Well, you could have thought it was just rubbish at the time, but in the Forex, the same applies when deciding what type of analysis to be used. Do not rely on a seul.Au Instead, you must learn to balance the use of two of them, because only then you can really get the most out of your trade.