Part of the process of learning Forex is to understand the different types of traders. Basically, their two - fundamental and technical traders. You to succeed in online commerce is necessary to understand these differences. You will receive a presentation on the methods they use to evaluate market conditions and leadership that can take the profit from foreign exchange tool. These 2 very different methodologies, and you can be comfortable either one or two. All the time you're faced with this terminology. Although there are huge differences in approach, it is necessary to say that most major financial institutions now use both methods and their strengths and weaknesses. Fundamental analysis refers to the broad economy, such as GDP, exports, imports, etc. As forextorgovets, I use both approaches in their trade, but with an emphasis on technical analysis. The fundamental trader believes that the stock market based on fundamental principles of the company, such as the ratio of PE, profit / loss, balance sheet management, business projections - the kind of information that is contained in reports provided to shareholders. Technical trader believes that his work is based on a simple, namely, the price chart of currency pairs. This is a reasonable assumption, because the price reflects previous work, and is dictated by the market during the trading day. (You can also hear the term chartist - this is the same) Basically, this is - the ability to analyze a price chart to predict future price movements. Fundamental concepts actually play a role, but only for large periods. You can use fundamental analysis to determine which part of the business cycle occurs in the economy and what industries offer the best potential for growth. Then use this information to identify groups of target shares, and then use technical analysis. Simple is not it?
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