July 31, 2017 at 10:46 am #766
There are many types of analysis in forex. All analysis is to read the market chart and predict the market trend. Though the analyses are divided into fundamental, technical and sentimental analysis the traders could not decide which analysis to follow in their trading strategy. Most of the new trader tends to trade the market based on technical analysis only which is completely wrong.
In our article, we are going to tell you which analysis is the best and ultimate trading secret in Forex. Professional traders have been using this secret to trading profitably for many years and now it is your turn to make the profit.
The Ultimate analysis to follow
The ultimate analyses to follow in this market is the combination of all of them. Do not get surprised as there is no best analysis. Imagine you are sitting in a chair. There are many legs in a chair and it should support your weight when you are sitting on it even if one of its legs is down. This does not happen. Even if only one leg is down in your chair, you will have a hell of an experience to sit comfortably in that chair. Maybe you will get up and prefer standing than sitting. Observe the trading style of the professional Aussie traders and you will notice that their trading system is based on the above mentioned three analysis.
Using only one analysis will only give a short view of the market. If you always sit in the chair with one leg down, you will never know how it feels to sit in your chair and not to think about keeping your weight balanced. When you are trading in the market, you will need every type of analysis in the market to help you to make a better trade. The market is not very helpful and only 5% traders are successful in making a profit. If you like to see yourself among these traders, you better use all them while trading CFD.
This is the third major analysis in forex trading. Many new traders often ask how they will master the art of sentiment analysis but in reality, no can learn this. You will develop this skills over the period of time. But in order to develop this, you need to have a strong knowledge in the financial industry. The professional traders at Saxo always suggest the retail traders read many books and articles on trading. There is nothing to lose when you read books and articles. To be honest this is the only way you can develop yourself as a professional trader. In order to make profit consistently, you also need to develop your psychology. The new traders often lose a huge amount of money due to their lack of trading discipline and emotional trade execution. If you assess the lifestyle of the most successful person in the world then you will be surprised to see that most of them read at least one hours a day. So gaining knowledge continuously is very vital for professional forex traders.
Conclusion: If you are thinking you will only follow one analysis, you will see that your profit is not growing at your expected rate. Every analysis in the market provides the trader with different information from different areas. The market of Forex is not controlled by banks or by governments in the countries. Millions of buyers and sellers are trading in this market and the market price level moves as result of their interaction. When you combine all of this analysis in your trading, you will be one step ahead in the market. You will know when the market trend will move and how to plan your trades.
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