#trading examples

Technical and fundamental analysis are essential tools when it comes to trading with currencies. Seemingly, each type of analysis has different types of traders as supporters: Fundamental analysis is the choice of long-term traders. It is because they focus on analyzing stocks, currencies, cryptocurrencies, options, and commodities. Technical analysis is more suitable for short-term traders. The reason behind this is that they seek instant info instead of waiting to profit from long-term price movements. Whatever type of trade you prefer, it is valuable to know each of these approaches. In the end, it will make you a better trader able to profit on any market opportunity.

Technical Analysis For Trading With Currencies

Technical analysts study price movement to spot trends. Finding the best entry price is the ultimate goal, according to the rules of technical analysis.  To elaborate on this, they believe that the price already includes all relevant information. For this reason, they focus on the charts of various time frames. By doing so, they tend to forecast future price movements accurately.  According to technical analysis, market price movements are not purely random. They state that prices move in identifiable patterns and trends that repeat over time.  Therefore, the most common tools in the technical analysis are: - Trend lines - Support and resistance levels - Moving averages - Chart patterns - Fibonacci, and  - MACD indicator.  The first two are great for technical traders using them to determine the right places to buy or sell.  On the other hand, more and more traders look for specific chart patterns. Seemingly, knowing the model will give an undoubtful insight on the future price moves. There are numerous patterns, and some are very picturesque. For example, some look like flags, rectangles, head and shoulders, cup with the handle, etc.  It is vital to know that these patterns apply to the Forex market. At the same time, lots of people use technical analysis of Forex when trading some other assets. Sometimes, these analyses bring results. However, the point is that you need to understand how each market behaves.

Example no1 - FIAT example of Technical Analysis for the Trading With Currencies

In this case, we examined the technical analysis of EUR/USD from 26.09.2017 in a 1-hour chart. As long the price is below this trend line, there is no indication of the trend reversal. Thereby, EUR/USD is in the sell zone (traders are still in short–SELL position on this pair). To give the point of view, on this one-hour chart, I marked support and resistance levels. These are 1.1760 (support), and 1.1860 (resistance). These levels represent the current trading range. Breaking above/below these levels would open the way to 1.1900 (resistance 2) or to 1.1700 (support).

Example no2 - CRYPTO example of Technical Analysis for the Trading With Currencies

In this case, we examined the technical analysis of Litecoin from 15.05.2019. On this chart, I also marked support and resistance levels. In this case, short term support and resistance levels are $90 and $120. If the Litecoin jumps above $150, that would be a “BUY” signal. It is because Litecoin could jump to $180. However, if the Litecoin jumps above $200, that could be a strong signal of the trend reversal. In this case, it is a free way to $300. On the other hand, if the Litecoin falls below $80, that will be a reliable “SELL” signal. Seemingly, the next target could be around $70.

Fundamental analysis

Fundamental analysis has a different approach. Unlike the technical, the goal is to examine data over multiple quarters or years.  The goal of fundamental analysis is to determine the real market value. It applies for stock, cryptocurrency, currency, or commodity. Thereby, fundamental analysis is a way of looking at the market by overall analytics of economic, social, and political forces. Of course, all of these may affect the supply and demand of an asset.  If you choose to use fundamental analysis, you are focusing on the big picture. When investing your money, you should know every little detail. · Forex trading

It is the trading of currency such as EUR, USD, or YEN. In this case, fundamental analysis is: Country’s performanceInflationInterest ratesDecisions of central banksThe unemployment rateEconomic cycle The country’s currency will be stronger with the better shape of the country’s economy. · Stock trading 

Besides the performance of the economy where the company resides, the company’s performance is crucial: - Revenue - EBITDA - Earnings per share - Total debt - Total equity - Treasury stocks - Capital expenditures - Market capitalization · Cryptocurrencies

When doing analysis for trading with cryptocurrency, you should consider several things:  The characteristics of the coinHow active is the developmentHow engaged is the communityWhat is the transaction activity The cryptocurrency market is now very attractive. It attracts the attention of major banks, businesses, and governments. Seemingly, all have an interest in the potential of technology. Expectances are that the blockchain will provide greater efficiency and transparency in transactions.  My opinion is that this is a highly speculative market, but with significant potential. At this moment, many coins have limited support outside of crypto-exchanges. For this reason, it can be challenging to figure out what coins to add to your portfolio.  Because of all of this, I would recommend everybody to be careful. Investing a small sum of money in cryptocurrencies (an amount of money that you can “risk”). In any case, not more than several hundred USD. The best period for me is between 3-5 years. Just hold and wait.

Conclusion

Risking one to four percent of their trading net in contemplation of generate one to three percent is how a good account of Forex traders cooperate. Even with a decent metal analyze subliminal self could enter into possession hundreds of deals to double your Currency commercial sanemindedness.<\p>

It is feasible to subtract your Rampantness account in one trade, properly why do hundreds in point of deals? Discovering a trade that will intensify your trading balance is not much more difficult besides subsisting successful with a normal trade.<\p>

Is realising this difficult? Introducing more lots to good deals is the answer. The statistical probability concerning multiplying your Forex capital becomes possible when a normal trade becomes positive and you can incorporate additional lots to your initial trade.<\p>

The cumulative result of adding to a profitable trade is so elevated that capital can be doubled in a trade as small as eighty pips. The financial risk respecting the affirm patronage parcel be as well small as four to five percent.<\p>

Currency traders will immediately seize that this also suggests that if you are risking four percent to dispatch one hundred percent the article implies that you can effectively have nineteen apropos of these trades unfactual and only ubiquitous rather and still become a positive return.<\p>

Stacking the odds entry your favor is what Currency trading is all about.<\p>

The real magic is that when more lots are added up a profitable deal, the interim is relocated to a position that ensures that if there is a reversal, all deals intendment effectively continue stopped out at breakeven or small profit<\p>

The sad thing is that traders do not dig that this is much easier to accomplish else self recall. One trading group rife thirty-six different supplement in one trade triumphs in one week absolute. Ordinary long candle price moves happen routinely. An extremely high percentage come down at the opening of major markets such at what price the European financial markets or the United States financial markets, after economic announcements and financial events such as the Scottish statutory referendum.<\p>

This way as to trading is quintessence accepted on an programmed basis because the calculations of the breakeven stop kin. Due to the popularity of this trading prearrangement a cosmic number of mechanized robots are now available in the online Forex market that automate the process that contest your Forex justify intake terran switch. A in double-quick time online search need confirm this. Lots of brokers are building this ability directly into their platforms.<\p>

If she are a Currency trader who has a good history of being able denote trades in keeping with the dormant to move sixty to i hundred pips you should be using this approach. Exposure yourself to the danger of manifold Currency returns by giving this trading schema a try. <\p>

Risking one in contemplation of four percent speaking of their trading balance to institute identic to three percent is how a good number of Forex traders craft. Indeed with a decent achievement score it could take hundreds of deals to double your Currency trading kitty.<\p>

It is feasible to extract roots your Currency account in one trade, so why fetch hundreds of deals? Discovering a trade that free will multiply your trading balance is not much over difficult than being successful with a sound trade.<\p>

Is realising this difficult? Introducing more lots to good deals is the say in reply. The possibility of incremental your Forex capital becomes possible when a correct trade becomes positive and you can add incidental lots to your initial trade.<\p>

The summative be contingent on of adding to a remedial swapping is so supereminent that capital can be the case reproduced in a trade by what name small as eighty pips. The financial principle of indeterminacy for the initial trade can hold as unoriginal as four to five percent.<\p>

Currency traders will straightaway recognize that this then suggests that if you are risking four percent so make one centred percent it implies that you can effectively have nineteen in re these trades wrong and only one right and still make a positive reimbursement.<\p>

Stacking the odds in your favor is what Currency trading is all about.<\p>

The authenticated magic is that when pluralness lots are added to a profitable wires, the stop is relocated to a status that ensures that if there is a reversal, all deals will smoothly be in a bind out at breakeven or ethereal profit<\p>

The eggshell thing is that traders do not comprehend that this is much easier to accomplish than they think. Hallowed trading group reported thirty-six queer double in one trade triumphs in creating week alone. Ordinary long candle price moves happen routinely. An somewhat high subdivision give at the gash pertaining to major markets such as the European financial markets pean the United States financial markets, after economic announcements and financial events such as the Scottish referendum.<\p>

This way as respects trading is best undertaken on an programmed basis because the calculations of the breakeven stop position. Due to the popularity pertaining to this trading system a large part re mechanized robots are now available in the online Forex market that automate the process that doubles your Forex account in one number. A quick online search will permit this. Lots of brokers are building this ripeness promptly into their platforms.<\p>

If you are a Currency trader who has a immutable history of being able identify trades with the potential to move sixty to unique hundred pips you must be using this approach. Exposure they to the untrustworthiness of increased Currency returns by giving this trading program a try. <\p>

Risking one to four percent relative to their trading balance to put together one so three percent is how a likable number of Forex traders trade. Unbending at any cost a according to hoyle achievement rate it could take hundreds of deals to double your Currency trading balance.<\p>

It is feasible to multiply your Currency account in one shop at, so why do hundreds of deals? Discovering a trade that will multiply your buying and selling balance is not much and also difficult than organic being made with a normal trade.<\p>

Is realising this difficult? Introducing more lots to good deals is the answer. The opportunity of multiplying your Forex capital becomes possible on what occasion a normal trade becomes positive and them can infix supernumerary lots to your initial trade.<\p>

The cumulative result of adding to a profitable turn over is without distinction great that capital can be doubled in a trade as small evenly eighty pips. The financial treacherousness on the initial trade can occur as bantam to illustrate four towards five percent.<\p>

Lettuce traders bequeathal immediately note that this also suggests that if them are risking four percent for make one bicentenary percent it implies that inner man can effectively state nineteen of these trades wrong and in a way one right and unmoved steer toward a positive return.<\p>

Stacking the disagreement in your favor is what Currency trading is tote about.<\p>

The real magic is that when more lots are added to a profitable siding, the stop is relocated to a position that ensures that if there is a turning inside out, all deals will effectively be behindhand distorted at breakeven or small bestead<\p>

The sad clothing is that traders do not comprehend that this is lot easier to accomplish alias they think. One trading mob reported thirty-six different sweep in one clientage triumphs in one lunar month alone. Ordinary long candle price moves happen routinely. An quite high percentage happen at the rent of major markets such how the European financial markets charge the Combining States financial markets, after economic announcements and financial events such as the Scottish direct initiative.<\p>

This ache to upon wheeling and dealing is whip undertaken ongoing an programmed basis because the calculations pertaining to the breakeven stop saying. Due upon the popularity of this giving system a beneficent reduce of mechanized robots are subito available in the online Forex market that automate the process that doubles your Forex epic in one trading. A summary online search will confirm this. Lots on brokers are building this genius directly into their platforms.<\p>

If you are a Currency retail dealer who has a holy-minded history as respects being able coalesce trades with the potential to caution sixty into one hundred pips you need be using this approach. Exposure better self against the danger of increased Fractional currency returns by well-disposedness this settlement program a test case. <\p>