Analysis is the key to Forex Trading

[Cedophe]

Fundamental analysis requires an understanding of the international economy and its agreements with the factors not yet accounted for by the market. This school of analysis works with long-term and investment trading.

The disadvantage of this type of analysis is the element of uncertainty that many entries create. The advantage of fundamental analysis is that when they are carried out correctly, they predict the fundamental movements of the price, which can help generate profit over a prolonged period of time.

Technical analysis is a more modern form of market analysis that only deals with two variables - time and price. Both are strictly quantifiable, accounted for by the market and are both undeniable facts. That's why, for many, Forex trading works best when you study charts instead of doing economic research.

 

[Robert Hills]

The analysis is only part of the trading process. But it is a very important element. Even experienced traders can face frustration due to many difficulties in analysis. They can trade badly because of tensions and doubts. Traders first need to control their mind and clear the head to analyze properly. In my case, I learned how to make proper analysis from my broker Eurotrader.