Having said that, I will like you to know the different types of trade. In Forex, there are basically two types of analysis- Fundamental andTechnical analysis. There has been a constant debate as to which analysis is better, but to say the truth, you have to know a little of both.
FUNDAMENTAL ANALYSIS
This is a way of looking at the market through economic, social and political forces which affects demand and supply. That is to say, you look at whose economy is doing well and whose is not and then base your descision as to your investing in such a currency, on the economy of that country.
Simply put, whichever country her economy is doing well, you know that the currency value will rise because more people will have confidence in investing in such economy. And of course, the reverse is the case for the country which the economy is not doing well.
I will be talking about which specific news event drive the currency prices the most, but let me leave you now to let this sink in.
Summary
- Forex trading is a part of stock market
- There are two types of trade analysis - Fundamental and Technical.
- Fundamental Analysis in Forex is a way of knowing a currency strength through the strength of that country.
