Fundamental analysis estimates various factors that influence the rates of currencies and other financial assets. In other words, this type of analysis studies politics and economy of the countries, which currencies were chosen as a trading instrument. Traders closely follow effects of global financial events, assess economic and political news of different countries, and analyze statements of central banks’ heads and officials. All the data together may give a clue on how exchange rates will behave in future. The key information to rely on is news about financial companies, banks, funds, and stocks, as well as monetary policies, various speculations, and forecasts. If traders see a connection between a currency rate and its country’s economy, they can forecast further movements of the currency. *Country’s economy and currency exchange rate* The more business opportunities a country has – profits from real estate, stock markets etc., the stronger the country’s economy is. If a country’s economy is considered to be the strongest, then domestic and external investors have a floor for investments in this country. Investments in the assets of a country are usually made in the local currency. Thus, the demand for the currency increases and its price also rises. Besides, there are economic indicators, thanks to which traders can evaluate strength of the country’s economy. Such indicators (reports) are released by governments or independent experts. The reports are revealed every week, month, quarter, or year. *Financial markets and news* After the release of economic data, various forecasts appear. If expectations are negative, traders sell the currency before the report release, making the exchange rate fall. In such a case, they say that the report was priced in, which means it was taken into account and therefore already influenced a price. If actual data corresponds to forecasts, it has almost no impact on a price. To keep abreast of the latest news, traders can use an economic calendar, where the time and date
There are so many differences between demo trading and live trading because demo trading is for a new trader who wants to learn Forex trading and practice all that he has learnt in theory so that he may see if he is getting the real results and if you finds that everything is smooth he can go with a live trading account because as long as he is trading on a demo platform even he loses money he will not lose money because those are not real money so it's a risk free trading exposure available and it is boon for a new trader amazing blessing.
Volume has stronger signals when the price is in an uptrend and is endorsing the upward move, so the volume is moving to the upside. On the other hand, if the trend is bearish and the volume is moving to the upside then is confirming the bearish trend.
Demo trading is the best place for beginner to learn trading. And if we're ready, use bonus promo like welcome bonus to start trading in real.
I like to position trade myself. I personally don't like sitting in front of a computer for 5 hours straight just to pull in a few pips at a time. I only look at charts maybe twice a day and do research a couple of times a week. That's all and so far it's working out pretty well for me
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