Friday, March 27, 2015

Forex trading Tutorial For Beginners Part 4 Forex Analysis

Well, well! Let’s see what next tutorial? Yep, yep! The creepy part ;) Forex analysis Technical and Fundamental! Don’t worry guys; I will make this part less painful ;) I know the words look scary! Especially if you not from economic or math! To be honest, it doesn't matter from where you came from, even if you don't have degree in economic or math, market analysis are not the most important! But to figure it out how markets works, at least you know something about market analysis whether its technical or even fundamental (my favorite part) 

Understand this part! Will make your investment lot more easier and profitable! The reason simple because, we don't play guessing game, especially when we deal with real money! Unless your father bill gates! :D lol analyzing market will help your investment for long run, and you could figure it out, where market want to go, and when to stop the loss trade! Most of forex trader basically when they open new position actually they have no idea where market want to go! And just like I said before, markets are beast! They can move to where ever they want, left, right, up and down! You name it ;) but there is one thing that market can't do! I.e. they can't stop moving! Unless the world itself are going to end ;) so, in nutshell! If we can stop this volatility we win ;) if you not read my tutorial part 1, 2 and 3, you will miss something and not get the whole thing! ;) So I recommend reading all part!

Forex trading analysis

If we talk about Technical Analysis, basically it’s all about graph, chart, candle stick and so on! Most of Technical traders tend to think, the history will repeat by itself! If you ask me! Does market price will repeat? Then my answer would be simple! No way! To be honest I am not sure why they think market movement have pattern? Maybe if we look flashback about price yearly and monthly! There is some pattern shape! But, I don't see any repeated movement, at least from my point of view! But if you agree with them, that's ok :) every man have their own thought, right? To be honest, I also use Technical analysis part, to recognize the Trend! Cause at some point, sometime market can't go against the trend! They always follow the trend, that's why most forex trader always said, your best friend is Trend! It means if we trade against the Trend, there's possibility that our trade will get big loss! In nutshell, try not to trade against the trend! (Thank me later) 

Now the fun part ;) Fundamental analysis! Basically this kind of analysis is easy to understand! The idea of this concept is simple about GDP (market value), or economic growth! there's a few factor that giving significant contribution to country GDP, that's why GDP calculation are very simple C+I+G+Trade balance(X-M) C for consumption e.g. retail sales, unemployment rates, car sales, home sales and etc., I or investment is all about Investment but not stock, saving, bond or stuff like that on the contrary, Investment in GDP calculation are about company that purchase machinery to increase their production quantity! I.e. expand! Meanwhile G or Government spending is all about government want to spend, it could be health insurance for people, Government project to create new jobs, build infrastructure and so on! Bottom line is G about what government spends! The reason simple because, when government spend, they will spend a lot ;) not hundred or thousand, at least they will spend million or billions! for sure, it will move the market!

Trade balance X-M mean export minus import! I.e. Net Exports! This parts for several country especially big countries e.g. US, UK, Germany, and other big country! This factors not giving any significant result! But at least by knowing the trade balance for small country, we can figure it out, to where their currency will move! That’s why most of big country has influence to the worlds! Simple because they are market itself! 

If you guys, still not understand about fundamental, no worry! Even for me, when first time I trade forex, I don't even understand what is fundamental, all I knows, sometime market make big movement and then my trade loss! :( (Poor bast4rds), anyway you don't need to learn about GDP, if you don't want to! all you need is to keep on eye, about forex news! Visit this site (forex factory news calendar) and this (DailyFX News) (FX Street Economic News) the trick to understand fundamental analysis is knowing GDP calculation, cause it will related with money movement and forex market!

Pro tips! read macro economic books! trust me, it will help you to mastering fundamental analysis ;)
Ditulis oleh: Forex Trader ForexAbiz Updated at : 7:52 AM

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