What Is The Best Forex Trading System For You?
By Ultimate Trading
Choosing Your Forex Trading System
All successful traders have a forex trading system that they follow
to make profitable trades. This forex trading system is generally
based on a strategy that allows them to find good trades. And the
trading system is based on some form of market analysis.
Successful traders need some way to interpret and even predict the
movements of the market.
There are two basic approaches to analysing market movements, in
both equity markets and the FOREX market. These are technical
analysis and fundamental analysis. However, technical analysis is
much more likely to be used by traders. Still, its good to have an
understanding of both types of analysis, so that you can decide
which type would work best for your forex trading system.
In fundamental analysis, you are basically valuing either a
business, for equity markets, or a country, for FOREX. If you think
it's hard enough to value one company, you should try valuing a
whole country. It can be quite difficult to do, but there are
indicators that can be studied to give insight into how the country
works. A few indicators you might want to study are: Non-farm
payrolls, Purchasing Managers Index (PMI), Consumer Price Index
(CPI), Retail Sales, and Durable Goods.
Most traders in the FOREX market only use fundamental analysis in
their forex trading system to predict long-term trends. However,
some traders do trade short-term based on the reactions to different
news releases. There are also quite a variety of meetings where you
can get quotes and commentary that can affect markets just as much
as any news release or indicator report. These meetings often
discuss interest rates, inflation, and other issues that have the
ability to affect currency values.
Even changes in how things are worded in statements addressing these
types of issues, such as the Federal Reserve chairman's comments on
interest rates, can affect your forex trading system. Two important
meetings that you should watch for are the Federal Open Market
Committee and the Humphrey Hawkins Hearings.
Just by reading the reports and examining the commentary, a FOREX
fundamental analyst can get a better understanding of most long-term
market trends and how they will affect their
trading system. Keeping up on these developments will also allow
short-term traders to profit from extraordinary happenings. If you
do decide to follow a fundamental forex trading system, you will
want to keep an economic calendar handy at all times so you know
when these reports are released. Your broker may also be able to
provide you with real-time access to this kind of information.
Just like their counterparts in the equity markets, technical
analysts who use a forex trading system analyze price trends. The
only real difference between technical analysis in FOREX and
technical analysis in equities is the time frame. FOREX markets are
open 24 hours a day.
Because of this, some forms of technical analysis that factor in
time have to be modified so that they can work in the 24 hour FOREX
market. Some of the most common forms of technical analysis used in
a forex trading system are: Elliott Waves, Fibonacci studies,
Parabolic SAR, and Pivot points.
A lot of technical analysts combine technical indicators to make
more accurate predictions to aid their forex trading system. (The
most common tendency is to combine Fibonacci studies with Elliott
Waves.) Others prefer to create entire forex trading system in an
effort to repeatedly locate similar buying and selling conditions.
Whichever form of analysis you choose, its best to make sure you
learn as much as possible about it and your market. Then you will be
able to use you knowledge to create a
trading system that will suit your needs, and help you to become
a profitable trader in the FOREX market.
About To Learn Secrets Most Traders Will Never Know About Profitable System Trading..."
Inside you’ll learn...
to design a winning system from scratch and exactly what
to do to supercharge your current stock trading system!
one ingredient you literally "Drop" into your
stock trading system that can triple your profit!
to use “secret” money management techniques
to minimize your risk.
tools the professionals use and how you can get huge discounts
(charting software, data, etc).
you'll also get a FREE copy of David Jenyns’ complete
Ultimate Trading Systems Course…
Just enter your name & email - then click the “Click
Here For Free Instant Download!” button. (All information
kept 100% confidential). The download details will be
emailed to you immediately.
take your privacy very seriously. My
personal privacy guarantee to you. I respect your privacy
and will never share your email address with anyone. You can
easily unsubscribe at any time. View our Privacy
Policy - David Jenyns Founder of www.ultimate-trading-systems.com