If you want to make a lot of money trading forex, you need to take your Forex education seriously. Before you trade your money and put it at risk in the market, think twice. Ask yourself if you have enough training in real trading. Ask yourself if your education is enough to ensure the safety of your operations. These are the different aspects you should consider about Forex:
Basic education
Basic education involves knowing what Forex is, the different terminologies used in trading, what brokers are, and how trading works. You can get the most basic educational information from FX trading broker websites. The educational and training materials found on these websites are free of charge. Therefore, you do not need to spend a lot of money buying e-books that provide fundamental foreign exchange education. Simply visit the FX sites and check out the e-books, articles or educational videos.
fundamental analysis
Fundamental analysis is a school of thought in Forex trading in which the trader looks at current economic situations that affect the value of the currency to determine whether to go long or short on a trade. This involves checking economic news on a regular basis before also acting on a trade. In other terms, the trader analyzes the external factors that affect the value of the currency. To understand how fundamental analysis works, he must study the subject in detail, whether from a book, from a video, or from the experts directly.
Technical analysis
Unlike fundamental analysis, technical analysis involves using charts, graphs, and the flow of currency value to determine whether to go long or short. This school of thought is based on the concept that history repeats itself. Certain patterns on the chart usually occur again in the future. There are different tools that can be used to analyze graphical data. Some of these tools can be very complex. Therefore, it is necessary to study how to use these tools properly to ensure the success of technical analysis.
Forex education does not stop after learning the basics of forex trading. To become a successful trader, you must also master fundamental analysis and technical analysis. These are the two most important schools of thought in any kind of trading. Some people prefer to use only fundamental analysis. Others prefer to use only technical analysis. When it comes to choosing which strategy to go for, practice on a demo account and find out which one works best for you.