Technical Analysis Can Help You Trade Better In Forex Trading | ForexGen

As a beginner there are two types of trading strategies you can adopt. The strategies are fundamental analysis and technical analysis. Technical analysis is a great tool to trade in the market and achieve success but I have always almost heard that people say that they had tough luck with charting tools and technical analysis software. The truth is that you should know how to use the software effectively and then you can achieve success with the technical analysis. There are errors that people make which makes them think that technical analysis is not helping them. The basic error traders make is that assuming that technical analysis will help them reach answers to what is the price is going to be. That is not going to happen, the technical analysis will always tell from the price trends and the historical trading patterns that yes at this level there will support and there may be levels where you can buy or sell. Never assume that there is going to be a price prediction. Use accurately the technical analysis and you will be making an informed decision about the prices. Also, make sure that you use breakout to your advantage and trade accordingly to make money. Technical trading software help you guide easily through these issues but then as with computers you need human intelligence to decipher the data presented. So if the technical analysis software tells you a thing then make sure that you apply your intelligent guess on top of it. That way you will be reasonably sure that you will profit from the technical analysis. As always the best strategy is to keep it simple when comes to using indicators. Stick to basic indicators and you will be on track. Use 5 or 6 or ten indicators and you will be confused as to what is happening to the charts at any given point in time. Forex charting is simple tool to help you benefit but do not bend it to suit your decisions and never try to evaluate your past strategies from the forex charting. This is known as curve fitting and it will do more harm than good. There are guide available for giving you help on how to read the charts and also how to use them as excel based plug ins. So make sure to use forex charting and technical analysis to your best advantage based on the rules above. About The Author The author has written extensively about the beginners forex trading here on http://www.beginnersforextrading.info Learn How To Profit From Economic Indicators No Comments Posted in Uncategorized by admin on August 22nd, 2008 By Amit Kheterpal The traders all over the world trade about $3trillion daily in the world foreign exchange markets. The markets are open all over the world 24 hours a day and keep on absorbing new traders every day. Now if you were to make some sense of what is happening in the currency markets and why there are swings across currency trading combinations then you will have to pay heed to a lot of economic news. There are several economic factors that change the view of the traders towards a particular currency. Almost anywhere you go the most common term that you will hear is the Fed. Fed is short for Federal Reserve and this is the central bank of the United States. Now the chairman of the Fed always has the best interests of the economy so as to steer it clear of recession and help the people get respite from inflation. Any decision the fed makes an impression on how the US currency behaves. That said, you need to understand how each and every statement of the fed impacts the foreign exchange market. The price of a currency is a factor of how the economy is shaping up. If the economy is not doing well, the price of the currency reflects that. The economic foundation of the country has to be sound for the currency to be strong. However whether you believe it or no, the currency traders pay particular attention to interest rates in the market and they are best indicators of the economic health of the country and also affect the general consumer market the most. So read and absorb all economic news, listen to experts and then take a judgment call on the currency. For example let us look at the scenario where US currency is week that impacts all the major currencies in the world and also the economies of the countries which have pegged their currency to the dollar. Most countries are now trying to peg their currency to a basket of currencies so that they are not dependent on one currency. This is really a diversification of risk for them. As a trader you should be able to understand how everything is interrelated. That said there are other indicators pertaining to individual economies that need to be understood in detail for the currency trading. Then there are detailed reports available which can be used to decipher and analyze the economic data. ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.