TECHNICAL ANALYSIS

Technical analysis is the process of analyzing a market's historical prices in an effort to determine probable future prices. This is done by comparing current price action (i.e., current expectations) with comparable historical price action to predict a reasonable outcome. If we accept the fact that human emotions and expectations play a role in market pricing, we should also admit that our emotions play a role in our decision making. Many investors try to remove their emotions from their markets by using computers to make decisions for them. Technical analysts are sometimes referred to as chartists because they rely almost exclusively on charts to look into the history for their analysis.
On looking to a chart we get a clear picture on "over all trend, support, resistance etc. And by using tools like momentum, volume (buying/Selling pressure), relative strength index, moving average and many studies like these, one can see the approximate future direction. To further strengthen the view some effective mathematical calculations are used, like Fibonacci numbers, Elliot wave count and Gann analysis etc. This entire process of technical analysis is one of the best analyzing methods to know the future prices.

FUNDAMENTAL ANALYSIS

Fundamental analysis is a process of analyzing the market with the news and facts that generates the initial direction. Fundamentally there are certain news which are the major reasons for the market price action. These news can be about economical or political changes and happenings. Since this acts as a trigger to the economical raise or fall of a country, it is followed by most economist and hence by traders and fund managers. This method to predict the next move in the market, though a best system may not work all the times. For example, there might be different news released at the same time the same day. (i.e US employment positive, retail sales negative, neutral interest rate decision, trade deficit widens). In this case no pro trader knows what will happen next, is the accepted truth. But generally we can compare the history of the market in the past and come to a conclusion how the market has reacted when there was a similar economical figure released. With this clue we can easily predict the direction of the next move, but again how much and how long the market is going to continue in this new direction, purely depends on the current situation. When we approximately guess the probable future price, we may require a conformation on our view for which we look into the charts.

What makes the Market Tick?

"Markets up sharply amid??", "Gold heading south due to??", "Exchange rates soars, more highs predicted??", For many of us phrases like these are important indicators for making a major trading decision. It is no wonder that following these markets has become a part of our life. So we read the, wall street journal, listen to CNBC, or click to the inter-net for the latest market in-formations from the experts. This is where we require fundamental analysis.Reports such as Gross Domestic Product (GDP), Employment levels, Retail sales, Capacity utilizations and others shows a country's economical health. While economical numbers can certainly reflect in the market, some reports and numbers become important to market psychology and may have an immediate impact on short-term market moves. "What to watch" can change over time. In recent years (for example) Interest rates, Employment data, Trade balance figures and Inflation numbers have all had their time in the spotlight. However, even most "experts" admit they have a difficult time "beating" the markets. That is where technical analysis plays an importance. If you have an idea about where the markets are headed but still have doubts then you can cross check with the help of technical analysis, where the ease of buying and selling decision turn to forex markets investment opportunities

Tip to Investors

Trading in speculative markets can lead to very quick and substantial profits or losses. At times it is possible that you may lose more than what you have invested in these markets. Reason behind this is improper management of funds. A good rule of thumb is to use only funds that you can afford to lose without affecting your lifestyle. In other-words the amount invested in these speculative markets should be only a part of your surplus funds. And this fund should carefully be diversified into various portfolios.
Remember not every trade will be a winner. Some very successful traders may only win 30%-40% of their trades, but still they are able to fetch hefty returns. The secret behind this is, they efficiently manage their risk in rest of the trades. The key is to cut your losses short, and always follow the rules of money and risk management.

Forex: Tips & Benefits

Currency trading on the Foreign Exchange market has numerous advantages as a home based business.
The startup costs compared to traditional businesses are extremely low.
You don't need any employees.
Trade from the comfort of your own home directly from your computer.
Make money regardless of the state of the US or world economy.
Trade from anywhere. If you like to travel, this is a dream business. Take your laptop with you and you can trade Forex and make money anywhere in the world where you have an internet connection. You have total freedom of location.
No experience or expertise whatsoever are required if you use a quality trading system, such as the 5Minute FOREX™ foreign currency trading system
When trading currencies you make profits on the fluctuation of exchange rates between major currencies. Currencies constantly fluctuate against one another regardless of the condition of the economy in individual countries, including the US. It is the perfect financial market. Trading Forex is truly a recession proof business.
$300 Account Minimum
No more are the days when you had to have millions of dollars to trade Forex. The minimums have now been lowered to the point where most people can afford access to foreign currency trading.
Liquidity
Forex is by far the most liquid market in the world. There is NEVER a problem buying or selling a position as in the stock market. The Forex market can absorb trading volumes and per trade sizes that dwarf the capacity of any other market. On the simplest level, liquidity is always a major attraction to any investor as it allows one the freedom to open or close a position at will. You can access the funds in your Forex brokerage account as easily as you can your bank account.
24-Hour Market
Foreign exchange trading is the only 24 hour market. It is the ideal market for active traders. Unlike stock and futures trading, currency trading on the Forex market is not cut short at the "close" of each day's trading. Forex trading is never paused, which ensures true 24 hour trading and the ability to trade during virtually any important event. The benefit of Forex being a 24 hour a day market is that there are little or no gaps in the market, meaning there is no chance that prices will close one day and reopen the next day at radically different rates.
When you are trading equities or futures, the central exchanges close at the end of the business day. This means that there is no liquidity in these markets after hours since the market is closed, which makes trading impossible. In addition, there is a high degree of risk for traders who have open positions after the market closes. If news or events take place after the close that affect their positions they will have no opportunity to liquidate their trades. The next day, at the open, prices may immediately jump drastically, forcing the trader to close their positions at a rate which they incur a far greater loss than if they were able to close their position after hours. The continual, 24 hour a day liquidity of the Forex market ensures that the trader can always open or close a position anytime, thus eliminating the large potential risks with market gaps