Technical analysis and fundamental analysis are the main areas of research in forex trading strategies as in the stock market. However, technical analysis is by far the most common strategy among individual forex traders. Here we will present a brief review of both types of analysis as well as how to apply them directly in Nova APP Forex trading:
If you think that evaluating a company’s performance is difficult enough, in the forex market you will have to evaluate an entire country instead of one. Fundamental analysis in forex markets is often very difficult and is usually used to predict long-term trends mainly. However, it should be noted that some traders are using the fundamental analysis in the short term trade during the release of important news. There are a large number of different key indicators that affect the value of the currency and are issued at different times. We’ll mention below a simple sample of which you can start with:
* Non-farm Employment Report
* Purchasing Managers Index (PMI)
* Consumer Price Index (CPI)
* retail sales
* Durable Goods
You should also know that these reports are not the only underlying factors that should be monitored. There are a large number of meetings where you get comments and quotes that can affect market movement as well as any economic report. These meetings usually discuss anything related to interest rates, inflation and other issues that have the potential to affect the value of the currency.
Even changes in how to formulate some things to address certain issues such as statements by the US Federal Reserve on interest rates; Can cause volatility in the market. There are also two important meetings that you should always follow closely: the FOMC meeting and the Humphrey Hawkins hearings.
By reading these reports and examining the accompanying comments, they help fundamental forex market analysts gain a better understanding of any long-term trends in the market, and allow short-term traders to profit from the time of unusual events. If you decide to follow one of the basic analysis strategies, you will need to always bring with you an economic calendar at all times to be informed of the dates of issuance of these reports. Your Nova APP broker may also have the ability to provide you with instant access to this type of information.
Just like their counterparts in stock markets, technical analysts in forex markets analyze price trends. The only difference between Forex technical analysis and technical stock analysis is the time frame which relates to the fact that the Forex market remains open for 24 hours.
Because of this, some form of technical analysis has to be adjusted to work with the market over the twenty-four hours. This is a collection of technical analysis commonly used in the Forex market:
* Elliot waves
* Phoebe Nachi Studies
* SAR equivalent
* Pivot Points
Many technical analysts have a tendency to combine technical studies with the aim of reaching more accurate predictions. (The most common method in this is the combination of Vipi Nachi and Elliot Wave studies). Others prefer to make trading systems in an effort to identify recurring buying or selling conditions.
Choose your strategy
Most successful traders develop a trading strategy and apply it over a certain period of time. Some of them focus on a particular study or account, while others use broad spectrum analysis as a means of identifying their trade. Most experts believe that trying to use a combination of technical and fundamental analysis can make long-term predictions as well as identify entry and exit points. Of course in the end it is the trader who will decide the best ways for him.
When you are ready to start in the forex market you must open a demo account and test your strategy on paper and then you train so that you can make profits on an ongoing basis. Many traders who fail have a tendency to jump in the Forex market and lose a lot of money in a short time due to lack of experience. So you have to take your time to learn and trade in a pilot before you start using the owner.
You should also have the ability to trade without emotion. You will not be able to track all stops if you do not have the ability to execute them in time. You should also set break points and take profits until they are automatically executed, and you should not change them unless you are absolutely obliged to do so. Make your decisions and stay committed, otherwise you will lead yourself and your business to madness.
You should also be aware that you need to follow directions. If you trade in the opposite direction, you may not reap anything but tampering with your money because the Forex market tends to move in the same direction more than anything else. Thus you will have a greater chance of success in Forex trading while adhering to the current trend.
Forex is the largest market in the world and every day people are getting more interested in it. But before you start your trade, make sure your broker meets certain criteria and you should take the time to find the right Nova APP trading strategy for you.