As you’ve probably seen, forex trading has exploded in recent years. Since you can now trade currencies online it has become possible for anybody to try trading forex to make money. Question is, how do the pros make money?
Normally you can break down traders into two categories: chartists and fundamental traders.
Fundamental traders will make their trading decisions based on their opinion about what will or is happening in the economy as a whole. They analyze how a particular currency’s value will be affected by various economic events.
Chartists use something known as technical analysis to make trading decisions. They look for patterns and various indicators based on price movement, price history and also volume traded. These are the people who analyze charts and for the most part, confuse a lot of beginners!
In my opinion, it’s good to understand how both of these trading techniques work. I personally use both although I lean more towards fundamental analysis.
Now, if you’re a beginner than both of these can be difficult to grasp. But you can still learn and apply them right from the start!
I also recommend using a forex trading program, otherwise known as a forex robot, in order to give you a head start. These programs will identify trades that you can enter (these trades are generated from a software that is programmed using technical analysis strategies). Many people have made a lot of money simply by using these programs.
Forex trading is exciting and a lot of fun. As you progress as a trader you will develop your own trading style and hopefully you’ll make lots of money!