Learning
Forex Analysis and Knowing the Best Forex Hours, Your Way to Becoming a Good
Trader
There is one thing a forex neophyte must master before he risks
his hard-earned money in forex trading - forex analysis. It would be impossible
for him to come up with winning trades without acquiring the ability to
accurately calculate where the currencies pairs are going. He will most likely
lose his money during initial trades, get discouraged and quit. And that's very
unfortunate because forex trading despite the complexities of the forex market
can be learned and mastered. What you need to become a good trader is an
education focused on equipping you with the ability to analyze forex trends.
There's no doubt that forex brokers want you to really learn
forex trading and earn money from the forex market. Ordinary traders like your
self bring to them substantial profits. Forex training courses they put
together are designed precisely to help you identify currency movement patterns
which are the basis of all trades. All courses will endeavor to make you
understand the two types of forex trend analysis. There are two - fundamental
analysis and technical analysis.
Fundamental analysis is about understanding the factors that
pressure currency prices to change. There are a many of them. For example the
policies, economic and political, of countries whose currencies are traded in
the market usually either strengthen or weaken currency values. You have to
know exactly what factors strengthen currencies and those which weaken them. By
becoming adept in fundamental analysis, it is easy to predict which currency is
going up in value and what currency is going down value at any given time. This
helps you determine which currency pair to trade.
Technical analysis is a lot more complicated as it involves
having the ability to interpret real-time market data generated by forex trend
indicators that are usually integrated into forex trading platforms. The
effectiveness of this type of analysis is dependent on the quality of data
generated by the indicators and how they can easily be interpreted. There are
many kinds of indicators and you have to find the one that best suits your
needs and one that will help you develop workable trading strategies.
Forex analysis though the most important aspect of forex
trading, which you have to learn in order to earn money from the market, is not
the only thing you need to have adequate knowledge of. Part of an effective
forex strategy is knowing when to trade and when not to trade. The forex market
is a 24 hour business, but forex hours mean the periods during the day when
trading is most likely to offer the best earning opportunities. Most
experienced traders agree that 8:00 AM to 12 PM EST is the best forex hours.
You will be catching the tail end of the European market and start of the US
market.
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