The purpose of currency trading is to gain from forex price movements and here we will look at the two forms of analysis, fundamentally and technically, and see which is best. So which method is best for you? Let's find out.
Let's first take a look at the basic analysis which is the study of supply demand and research issues to work on where prices may go in the future. Studying economic and political events, FX traders buy or sell the news.
The problem with basic analysis is that – although we all have the same things to look at, we all make different decisions. Traders do not respond to the news and cannot see it logically, they also respond to emotions of greed and fear, and that means you cannot trade news for the news.
If you notice the currency markets, it doesn't matter to its correspondents why it is important for their trader's response and why, you will see markets crashing when the markets are great and rally, when it is not towards you.
The problem when it comes to studying the fundamentals is that the business people are passionate people and that is why the technology analyst has a huge advantage.
If you use technical analysis, you have just assumed that the basic supply and demand situation will be reflected in the price action, but you must not just news it, you see how each merchant has dealt with it and the price you see gives you all at once. News and Business Psychology.
If you want to win in Forex trading, there is no better way of doing business than just trying to trade news using Forex Chart, it also takes a lot less time. FX technical analysis allows you to track triple digit gains just by following the price action, and Forex is the best way to trade.