There are lots of useful techniques and tools when a trader decides to develop his forex trading strategy. Basically, the best trading platforms belong to one of two groups
In this type of analysis, traders should pay attention to the economies of the world and individual countries. It also means recognizing the current political trends, the financial situation of influential companies and even the weather. Because natural disasters can have a big impact not only on an individual country’s economy but also around the world. Take the hurricane season in the Atlantic in 2005 as an example. It includes seven major hurricanes, and Hurricane Katrina was the most worth reporting.
It was the most costly tropical cyclone ever in terms of economy and insurance loss. In the United States, an estimated $ 20.9 billion in economic losses occurred throughout the season and, obviously, negative consequences as chain reactions of economic impact on countries all over the world began.
Traders who base on the fundamental analysis will gather one or more types of information which may affect the economy to their trading strategy in Forex market. From there, they can decide where,when and how to join into the Forex trading market. They can even make a prediction about the market based on what is going on because they think that happened events may have a certain effect on the value of the foreign currencies in some ways.
Technical analysis has long been used, especially in the movement of the stock market.
In the best trading platforms, technical analysis use Historical data from the basic Forex trading strategy.
From this data, it can tell a fortune about the price of a particular currency in the future. There are various methods and tools to dot and we will discuss it later.
>> Read more: THE MOST POPULAR CURRENT FOREX TRADING METHODS
Fundamental and technical analysis, which are the best trading platforms?
In order to be fair and honest, we must say that it is better for applying both in combinations than excluding one. And there are many successful traders who fully agree. Surprisingly, there are still several experienced and famous traders who have focused on their approach method on either a fundamental or technical analysis going in one direction. An example on technical analysis, we have Martin Schwartz who gained a large respect and loads of money based on his strategy. Aside from that, Jim Rogers, who achieved his accomplishment based on exclusive fundamental analysis. They are both success in exclusive ways. Therefore, there is not only one correct approach to success. Instead focussing on choosing which method, emotional control and discipline are the aspects that much more important.
Overall, we briefly introduce the best trading platforms types of information used by traders. Let’s look at some examples of various types of foreign exchange trading strategies. We won’t tell you which is the best option for you, because it depends on many variables. Our goal is to introduce as much fundamental information as possible, to give you some examples and to inspire your appetite so that you can keep researching and developing the best trading platforms your own strategy or imitate others’ strategies.
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