Briefly I will explain 2 ways to analyze market price movements that is with technical analysis and fundamental analysis so you can know the direction of movement of currency value. Armed with this analysis you will be ready to face the real forex market when you open a forex trading account in the future. You can open a real forex trading account through the RoyalPip website.
Learn technical analysis.
Technical analysis is one way to analyze currency price movements in the forex market. This technical analysis uses the history of movement in the past to analyze future price movements. The technicalists (traders who use technical analysis) have the slogan “History Repeat It Self” which means that past price movements will be repeated in the future.
This time I will teach you to use one technical indicator that has been tested by many people able to generate profit on forex trading that is technical analysis using RSI indicator. Then how does this indicator work system as a signal for you to open a buy or sell position? Learn more through RoyalPip for example.
Learn fundamental analysis.
Fundamental analysis is an analysis that uses economic news related news of a country’s economy that impact on the movement of currency. This analysis has a very wide coverage and as a beginner you do not need to know all sorts of aspects of the economy in it. Why is that ? Because this will you learn at the higher level of forex learning that is on forex trading curriculum ahead through platforms like RoyalPip. In this quick way of learning forex I will just give examples of news and how to analyze it for easy to understand.
Example News: When you read the news or watch a television show, there is news that there has been a tsunami in the UK, All the ports and settlements along the coast have been severely damaged. There were many injured locals and the hospital was full of incidents.
What is the effect of fundamental news on the movement of the pound sterling currency?
The effect is pound sterling will be weakened, one of them because of export and imports through the sea roads have obstacles so that the economy in the UK becomes disrupted. As a result of this, the exchange rate of GBP currency will fall and as a forex trader we will take a position of selling GBP to benefit from the decline in currency values due to this news.
Fundamentally, Not only natural disasters will affect the exchange rate of a country’s currency. There are many other trigger triggers that can also affect price movements such as interest rates, unemployment rate, a country’s labor wage, mining production levels, plantations, agriculture and many other fundamental factors.
If you understand and are able to analyze this, then with forex trading you can channel your talents and abilities in observing the economy of a country and seek opportunities to achieve profits of magnitude. If you want to better understand this forex trading, you can learn through the website of RoyalPip.