Forex is the simultaneous purchase of one currency, and sale of another, discover more. The currency of a country is traded for the currencies of another. All currencies are traded at a floating rate and always in pairs. Over 85 percent of daily trades involve the trading of major currencies.
Trading forex requires constant attention. If you are able to monitor and analyze the foreign exchange market constantly, then it is possible for you to win in the market. Forex trading requires a great deal of research. Trading forex requires full-time effort. Part-time traders can’t win on the foreign exchange market.
It doesn’t matter if you are a full-time trader or part-time trader. The forex market requires a great deal of fundamental and technical analysis. Fundamental analysis is much easier to do than technical analysis.
Three assumptions are the basis of a technical analysis:
1. The market’s movement is everything.
2. The purposeful movement of prices;
3. The past repeats itself.
Technical analysis is a study of past prices on the market to predict or know more accurately the direction in which future prices are likely to move. The technical analysis requires different indicators, charts of various types, graphs and analytic methods.
The technical analysis requires a great deal of concentration, patience and time. After completing the technical analysis you will have a better idea of when to purchase the currency and when to dispose it to make profits.
Part-time traders do not have much time to devote to technical analysis. Full-time traders do the job. How could part-time traders win on the foreign exchange market in this case?
The forex market grows faster than all other markets in the world. The forex market has also developed many new tools. Part-time traders can benefit from forex trading signals.
Forex trading signals have been proven to be reliable indicators of market trends. Forex traders can make money by using indicators such as breakouts, resistance and support levels, envelope patterns (currency pairs close to moving averages), stochastics lines, oscillators and Fibonacci. About 26 indicators are available – a good reason for forex traders to use experienced brokers.