#Article #Forex Trading

Forex Focus: Strategies for Smarter Trading

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Forex trading can be a Strong tool for novice and busy traders who want to achieve consistent results in the Forex market without spending much time and effort on Analysis and decision-making.

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Understand the Broker’s Role and learn Fundamental and Technical Analysis. Discover Successful Psychology to Create a Passive Income.

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Types,

There are two types of Analysis,

1) Fundamental Analysis

2 Technical Analysis

1) Fundamental Analysis

They are involved in assessing the economic well-being of an extension and the currency by country. It does not take into account Share price movements. Instead, fundamental forex traders will use data points to determine the Value of a particular currency.

Company Analysis

Economic Indicators

Industrial Performance

Interest Rates

Geopolitical Events

Macroeconomic Factors

Company Analysis

  • Competitive Advantage
  • Financial Stability & Performance
  • Growth Rate/Sales Market Share
  • Financial Leverage and Borrowing Capacity
  • Previous track record Profits of the company
  • Corporate Image
  • SWOT Analysis Profits Management
  • Operating Efficiency
  • Future estimates of sales

Evaluating the financial performance based on the company’s qualitative factors and quantitative factors is company analysis.

Qualitative Factors: The qualitative factors that affect the Value of a company are

1. Business Model: How a company makes money. It describes the company’s operations, mode of revenue generation, nature of expenses, organization structure, and sales and marketing efforts.

2. Management Good and capable management teams generate profits; management should attain the company’s stated objectives and create Value for all the stakeholders. The criteria used for management analysis are management discussion and Analysis and management ownership of equity stake.

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Economic Indicators

  • GDP of the country
  • Level of Savings & Investment
  • Inflation Rate Interest Rate Growth in Primary, Secondary, and tertiary
  • Sectors Tax Structure
  • Economic Forecasts
  • Infrastructural Facilities Demographic Factors Climatic Conditions
  • State of Economy
  • Balance of Payments Situation Government Budget Linkage with World Economy

Industrial Performance

  • Growth rate of Industry Type of Industry – Growth, cyclical, defensive, cyclical growth Nature of Competition Nature of Product
  • Subsidies, incentives, concessions
  • Tax framework Import and export policies
  • Financing norms
  • State of Technology Industrial Policies Socio-Demographic Trends
  • Government programs and projects Supply Sector
  • Industry Life Cycle SWOT Analysis

2) Technical Analysis

Technical Analysis involves looking at market prices and patterns, ignoring all other data. Fundamental Analysis consists of researching what is driving market price action, taking earnings, economic data, and more into account.

A method of predicting and analyzing stock movements based on past(old) market data, primarily price and volume.

  • Indicators and Oscillators
  • Price Charts and Patterns
  • Support and Resistance Levels
  • Volume Analysis
  • Trend Lines

Indicators and Oscillators

Technical indicators and oscillators help traders analyze price movements, trends, momentum, volatility, and other market aspects. They are based on mathematical formulas that use historical data, such as price, volume, or time, to generate signals or values that can be plotted on charts.

  • Trend Indicators are needed to determine the trend.
  • Volume Indicators show the current trading volume in the market.
  • Oscillators help you find entry and exit points.

Price Charts and Patterns

A price channel is a standard parallel trend line forming a stock or commodity chart pattern. Channels may be descending, ascending, or horizontal. When prices stay through and pass through a trendline representing resistance or support, the trend is said to be broken, and there is a “breakout.”

Analysing,

  • Support and resistance levels
  • Moving averages
  • Chart patterns

Volume analysis

The Volume analysis examines the number of contracts or shares of a safe that have been traded in a given time. 

Technical analysts use them in many factors that inform their trading decisions.

Market 

A market is the total of all buyers and sellers in the area or region with lower consideration. The places may be the Earth, countries, regions, states, or cities.

The Value, cost, and price of traded items are per market supply and demand forces. The market may be a virtual or physical entity. It may be local or global, perfect and imperfect.

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Market analysis

A market analysis is the best way to get a third-party perspective of all the best options for your marketing campaign and ensure that your marketing dollars are spent most effectively.

The goal of market analysis is to define a market’s attractiveness and understand its evolving chances and threats as they relate to the strong and weak of the firm.

Market research

Market research can be of two types:-

1) Primary Market Research

2)Secondary Market Research

Primary Market research

Primary research is original information gathered through your efforts to respond to a specific question or set of questions.

This information is generally gathered through surveys, observation, or experimentation.

Secondary Market research

The information previously gathered for a purpose other than the study is secondary data.

Examining existing secondary data helps do general, exploratory research to learn more about your area of interest. Sources include:

  • Government
  • Trade Groups and Journals
  •  Business Magazines and Reports
  • Local Community Resources


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