Trading the Currency Markets is not for everyone. In fact, if you don’t know what you are doing, insiders say you can really get hurt. However, if you are a statistical nut who loves charting and graphing and has always been interested in learning about the markets – this post was written just for you so Enjoy!
If you’re a brand new trader, the world of trading can seem like a scary place; especially if you’re trading all on your own. However, there’s no need to worry as help is at hand through trading strategies.
First, we recommend you CLICK HERE to check out an incredible reading resource called “The Black Book of Forex Trading”. It’s a MUST READ if you are looking into trading the Forex markets.
Now, it’s important to note that every single trading strategy is different depending on the person making the trade. As such, it’s really difficult to discuss individual strategies, as you have to find something that’s tailored to you. However, having said that, almost all trading strategies can be split into two broad groups: fundamental analysis strategies and technical analysis strategies. Here, we discuss both, followed by how you can access them and use trading apps to help you trade.
Fundamental analysis is the interpretation of reports and economic indicators. These are mainly news based, so news on employment figures, inflation charges or changes to interest rates should always be looked out for.
Some of these may seem completely unrelated to the world of forex, but it doesn’t work in a vacuum, and it’s linked to the economy in all forms. So, for example, America’s unemployment rate will be directly linked to the strength of the dollar.
As such, you should always know when these figures are released, so you’ll be prepared for the market impact and subsequent volatility. Try this economic calendar.
Technical analysis predicts that past prices will influence or mirror future price changes. As such, technical analysis is all about reading and interpreting charts.
Forex markets are the most liquid in the world and vast swathes of data mean that you can use large volumes of data to influence your view. If interpreted, you should be able to find statistical significance.
How charts are interpreted remains the same regardless of the underlying asset. Investopedia has a great guide that can help here.
Analysing Trading Apps
In order to make your trading strategy work for you, it’s important to ensure that it is compatible with your trading platform. If you opt for a reputable broker such as Oanda, then you should also have access to a number of different platforms and trading apps. In doing so, it will mean that you’ll be able to trade everywhere, from on the move to sat at your office desk.
Providing yourself with the ability to analyse trading apps also allows you the opportunity to analyse and assess your trades. This means you can adjust your strategy as you go, tweaking and tailoring it to your needs. Whether you opt for a fundamental form of analysis or a technical one, you’ll always have to improve on it, so trading apps are a vital step.
To conclude, coming up with a trading strategy will help you navigate the markets. So choose between a fundamental form of analysis or a technical one. Then, once established, ensure you have access to trading apps so you can tweak and improve it as you go.