The purpose of currency trading is to profit from the Forex price movement, and here we will look at two types of analysis: fundamental and technical, and we will see which one is best. So which method is best for you? Let's find out.
Let's first look at the underlying analysis, which is the study of the proposition, and ask for elaborate facts where prices can go in the future. Studying economic and political events, the FX trader then buys or sells these news.
The problem with fundamental analysis is: While we all have the same facts to look at, we all draw different conclusions from them. Merchants do not respond to news and see it logically; they respond to feelings of greed and fear, which means that you cannot trade the news for profit.
If you look at the currency markets, then this is not the important news that highlights the reaction of its traders, and why you see markets crash when the news is the best and the rally when its & nbsp; & # 39; worst of all
The problem with studying the basics is that this form of study takes into account the fact that traders are emotional beings, and this is when the technical analyst has a huge advantage.
If you use technical analysis, you just assume that the underlying situation of supply and demand will be reflected in the price action, but of course, not just seeing the news, you see how every single trader does about it and the price you saw. you all news and merchant psychology at the same time.
If you want to win Forex trading, not only is Forex charts a better way to trade than trying to trade news, it also takes much less time. FX technical analysis allows you to look for three-digit profit simply by following price action and the best way to trade Forex.