Daily Bulletin

Money

  • Written by News Company


As the world’s most traded financial market, Forex trading presents a wealth of opportunities for those who can harness its inherent volatility. Foreign exchange trading refers to trades that take place in the foreign exchange market. While most traders understand that forex strategies are vital when navigating markets, they often oversee the importance of Forex trading courses and platforms. Some foreign exchange traders fail because they try to run before they can walk. People in Australia are passionate about Forex trading, but it doesn’t mean that somersaulting into Forex trading will do them any good.

A period of technical education followed by Forex workshop and 1-on-1 coaching is what makes traders market ready.

In this post, we will discuss ‘foreign exchange strategies’ to help you prevent disasters and maximise your potential in the foreign exchange market.

Before you trade, there are three critical elements to consider-

1. Selecting a Forex broker

2. Selecting a trading platform

3. Adopting a solid currency trading strategy

There are two common types of Forex trading strategies one can choose from:

1. Technical Analysis

2. Fundamental Analysis

Here are the breakdown and analysis of both technical and fundamental analysis FX trading strategies.


What is technical analysis?

Technical analysis looks at the potential future price movements for predicting the patterns that combine result in financial gains. Traders who rely on technical analysis make use of a variety of different graphs to make market predictions. Although the technical analysis looks at the present intrinsic values, it seems at Bollinger bands to see how rapidly a prove changes and what happens when it drifts off of a projected guideline. Technical analysis helps in determining the longevity of the band before it comes back to its original status. According to the market experts, the tighter the band, more likely a big move is happening in the future.

Advantages of technical analysis:

• The most revealing way to evaluate foreign exchange

• Can be done quickly

• Technical analysis is well-established

• No slow stochastic guesswork necessary

• Suitable for all investors

Disadvantages of technical analysis:

• Hard to understand and master

• It requires your predictions to be accurate and reliable

• Technical analysis is also thought to be subjective


What is fundamental analysis?

Fundamental analysis allows the traders to analyse the market and measure currencies based on an array of different underlying factors. While technical analysis looks more at price movements and patterns, the elements of fundamental analysis are often much more calculated.

When trading using fundamental analysis, the investors look to the intrinsic value of a currency. This is done by reviewing the economy and industry conditions, including the state and management of particular organisations in an economy. Moreover, the traders also look at expenses, liabilities, assets, and earnings of an economy, to get the better idea of what could happen soon.

Advantages of fundamental analysis:

• Investors are immediately provided with all the information

• Investors can look at economic indicators and make moves based on their expectations

• The structural analysis puts a strong emphasis on patterns based on the calendar

Disadvantages of fundamental analysis:

• Takes long to evaluate

• The process can be too long, tedious, and time-consuming

• Investors tend to leave the process if the expectations are not met. This can harm the overall operation of the investment


Which strategy is right for you?

It is hard to tell which strategy is right for you because each has his/her own ideas for what is best for Forex investing and when it comes to investing, there is no real wrong or right answer.


The Conversation

Politics

Backing Australian business, jobs for the US Moon to Mars Mission

The Morrison Government is positioning Australia for lift-off with a $150 million investment into our local businesses and new technologies that will support NASA on its inspirational campaign to re...

Scott Morrison - avatar Scott Morrison

Prime Minister - Ceremonial Welcome, White House - Washington DC

As I just said to the President, thanks mate.   Mr President, Mrs Trump, honoured guests, distinguished guests,, friends one and all, here in this land of liberty. Thank you Mr President and Mrs T...

Scott Morrison - avatar Scott Morrison

Prime Minister interview with Deb Knight

WEDNESDAY 18 SEPTEMBER 2019   DEB KNIGHT: Prime Minister Scott Morrison has launched a 12 month inquiry. He joins us now from Canberra. Scott Morrison, Good morning to you.   PRIME MINISTER: ...

Scott Morrison - avatar Scott Morrison

Business News

Ways to Take Control Over Your Startup's Public Image

The way in which others see your business only seems like something that you have no control over. After all, it’s their own subjective matter, right? Well, the concept of branding represents a sc...

Diana Smith - avatar Diana Smith

How Digital Futures Platforms are Changing it All

Some people still remember the days when you had to be in one of the world’s centers of finance in order to be able to trade with futures. Technology has developed a lot since then and trading wit...

Diana Smith - avatar Diana Smith

Your Ultimate Guide on Making an Office Cleaning Checklist

A cleaning list is simply a list that guides cleaners on what should be done. Several factors determine the type of cleaning list for your business premises.  The cleaning checklist usually provided ...

Clean Group - avatar Clean Group

Travel

Essential Tips When Planning a Trip in the USA

Everyone has their dream destination. It could be a memorable place because of their parents, a destination to be ticked off in the bucket list or a place to find yourself. If your dream destination...

News Company - avatar News Company

Travelling Tips and your Roots: Who’s Looking out for Home?

If you lead a life of travel, chances are you know that not everyone gets the same kick out of living as a nomad. Today we focus on those ‘left behind’ – how do you nurture the valuable people in yo...

News Company - avatar News Company

TOURISM NT LAUNCHES NEW BRAND

New tagline revealed, new campaign set to launch ‘Different in every sense’ will replace Tourism NT’s ‘Do the NT’ tagline from today as part of a new brand positioning aimed at attracting more vi...

Matthew Ongarello - avatar Matthew Ongarello

ShowPo