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1. Study the macro-economic indicators and the monetary policy of the central banks of the countries whose currencies you are interested in trading or analyzing. This is known as fundamental analysis. Keep track of the important reporting dates on the economic calendar.
2. Study past exchange rate data for the purpose of identifying whether or not exchange rates are increasing or decreasing overtime. Technical analysis consists of plotting past exchange rate data on a chart along with mathematical indicators used to assessed the strength or weakness of the market's trend. Start your study of technical analysis by visiting free educational websites such as Forex Traders and Online Forex Trading.
3. Study foreign exchange rate strategy, which seeks to combine fundamental analysis and/or technical analysis in conjunction with money management for the purpose of deciding how to invest or trade in the Forex markets given your current financial resources. Practice paper trading the Forex market by executing mock trades for an imaginary Forex brokerage account. Keep track of the profits or losses in your imaginary brokerage account.