Forex Trading Strategies

It seems now adays if you do any type of search for a FOREX Trading Strategy your browser will be filled with loads of GET RICH WITH FOREX garbage cloging the search results.

Not that there's systems out there that really work MOST of the strateges boil down to the 2 standard Market Strategies.

Fundamental Analysis
Fundamental Analysis is using things like earning reports, news, company managment to make your trading decisions. In FOREX there's one main ways people use Fundamentals which is News (this includes things like the FED increasing or decreasing interest rates).

Technical Analysis
Technical Analysis is using a chart to determine if you will be buying or selling. A few common approaches are Moving Averages, RSI, Divergence and Fibonaci Numbers.

Remember any markets underlying move is human emotion and the way it goes will be determined upon the emotions of the people investing.

The interesting thing is this. If X number of people are using Moving Averages and X are using say Fibonaci Numbers, the Markets will move the way the majority or the buying power is leaning toward. So sometimes your Moving Average Strategy might be working and then the next thing you know it won't be working at all.

It's easier to show a chart AFTER it's been drawn and say, we could predict the markets movement based on X, however when it was moving this analysis wasn't obvious like it is after the fact.

And of course people like to make things fit into their strategy, so if they're using moving averages, you will see a lot of charts with moving averages working for them AFTER the fact and not in the timeframe where they had to make a buying decision.

Remember with any FOREX Trading Strategy you really have a 50% chance of winning even if you randomly choose to buy or sell.

It's not how many times you win or lose, it's how much you make or lose when you win or lose. Setting your loses for less and targets higher is truly the best FOREX Trading Strategy when used with either Fundamental or Technical Analysis.

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