Do you really believe trading is the perfect profession? Do you really want to become successful at trading? If so, you are in the right place. The majority of the new traders don’t really know where to start learning the art of trading. They start trading the Forex market without even knowing the three major forms of market analysis. Unless you master these three techniques, you can’t afford to make a living out of trading. So, what are the three major forms of market analysis? They are:
- Technical analysis
- Fundamental analysis
- Sentiment analysis
Technical analysis
Technical analysis is the basis of this market. You can’t find the exact entry or exit point for trade unless know the proper way to perform technical analysis. Those who are relatively new to the trading profession often think that by learning the technical details of this market they can easily change their life. But the professional traders in Hong Kong always consider technical analysis as a part of this profession. Though it will help you to find the quality trade setups you will never be able to assess the strength of the market trend. To do that, you must learn fundamental analysis.
Fundamental analysis
Fundamental analysis is based on assessing the high impact news of a certain country’s economy. The new traders might get scared by seeing the complex nature of fundamental analysis but in reality, it’s very simple. You don’t have to get a Ph.D. in economics to analyze the fundamental variables. Open a demo account with a premium broker like Saxo and try to understand how different news affects the major currency pairs. To learn more about professional brokerage firm you can visit https://www.home.saxo/en-hk. So, why do you need to demo trade the market in a professional environment? Unless you trade with an elite class broker, you will never realize the importance of precise price feed. In fact, you will face many technical issues which will make trading extremely hard.
Sentiment analysis
Sentiment analysis is the most complex part of the trading profession. This is something which can’t be learnt by reading books and articles. Over a period of time, you will trade the market and slowly begin to understand the sentiment of the market. If you analyze the trading history of the professional traders, you will find many closed trades even though it had the potential to hit the take profit level. This is the effect of sentiment analysis. Once you master sentiment analysis, you will be able to improvise your trading plans based on the market conditions.
Developing a perfect system
After learning the three major forms of market analysis, you need to create a balanced trading strategy. Instead of trading the market with real money, open a demo account with Saxo and try to different trading techniques. Losing or winning doesn’t really matter at the initial stage. Make sure you identify the mistakes from your losing trades so that you can fine-tune the trading strategy on a regular basis. Demo trade the market for six consecutive months and if you feel confident with your demo trading performance switch to the real trading account. Make sure you chose a premium broker or else you will have to face many technical issues. Always try to trade the market in a professional trading environment since it will help you to become a better trader.
Conclusion
Learning the three major forms of market analysis is really easy. But you must have strong determination and devotion. Always remember trading is just a business. You need to have a proper strategy to deal with the complex nature of this market. Once you start to understand the nature of this market, invest a small amount and see how it works in the real environment. Always trade with the money that you can afford to lose.