technology on the market forexNastoyaschey article concludes our series of lessons that introduce the novice trader with the peculiarities of the international financial market Forex.
When I first heard trading in Forex, there is a feeling among many of something incomprehensible and difficult. In fact, things are much simpler. Know and really need a lot. And this knowledge is readily available to man with secondary education, who can use a computer.
Pricing process in the Forex market is random. But, considering that in this market people are working, and people have emotions and memory, we can safely say that all processes with aftereffect. Simply put, prior to market price movements have a direct impact on the subsequent.
It is the presence of aftereffect causes relatively high predictability of financial markets. For example, remembering that after the price cut turned around and began to rise, traders are likely to be considered the option of buying at this level is reached again.
But still, that analyst forecasts of the Forex market and justified, and profits grew, mastering the technology should work for the Forex, the main components of which are as follows:
fundamental analysis;
technical analysis;
classic analysis of graphs;
analysis of indicators;
management of capital;
stock market psychology.
Let us examine them briefly again, summing up. Fundamental analysis studies the behavior of prices at the level of macroeconomics. It is based on knowledge of the macro-economic life of society and its impact on price. The exchange rate influenced by factors that reflect the state of the economy from economic growth - industrial production and GDP to the solvency of the country and its confidence in the national currency on the world market.
The second component of the technology market Forex - Technical Analysis, which is divided into the classical analysis of movements in prices and to analyze the behavior of technical indicators. The aim of classical analysis - building of forecasts of market conditions by studying price movements and their kind. The disadvantage of this type of analysis - subjective, since emerging on the graphs of figures can be variously interpreted, and conclusions of these interpretations may also be made very different. In contrast, in the analysis of technical indicators readings are interpreted unambiguously.
The third component of the technology market Forex - money management. Money management allows you to avoid unnecessary risks in commercial transactions on the Forex market and to manage risk. The rules of money management help to choose a Forex trader volume of commercial transactions, which allows you to build a trading strategy in a particular market situation and determines the maximum level of losses.
And finally, the psychology of the market. The main enemy of forex trader are emotions. That emotion can nullify all the efforts to analyze the market Forex. Learn to control your emotions and to approach every financial transaction will meaningfully study of the principles of exchange of psychology.
Theory theory, but always remember, exchange technology - not an exact science. Market volume is unknown to anyone, so you can learn as long as desired. Here a reasonable sufficiency.
Providing a variety of dealing centers free demo account (demo account) for working on them trading tactics and continue the learning process in conjunction with practical action is helpful in the development of technologies of the Forex and determination of reasonable sufficiency.