Forex Analysis for Smart Trades Withh FAP Turbo

Trading on the Forex without using any type of analysis is comparable to jumping into a pool of sharks with bloody meat wrapped around your body from head to toe. You're just asking to be eaten.

If you don't use any type of analysis to make your Forex trades, you're headed for trouble and using the wrong kind of analysis won't do you any good either. Trading on the Forex cannot be accomplished with a head in the sand strategy. It's not a sit back, relax and let the trades appear to you by osmosis. To become a smart trader on the Forex and know what currency pair to buy and then when to sell that currency pair takes work. That work is known as analysis.

There are two main different kinds of analysis most traders are familiar with and you have to choose which one you see working to bring in the profits or you have to mix the two and create an analysis of your own. Whichever way you choose to formulate your analysis, if it doesn't work on the Forex, then scrap it. The first type of analysis used in conjunction with Forex trading is known as the technical analysis.

When you make decisions about investment moves based on technical analysis, it means you're paying attention to the statistics. Technical analysis is the most used type of analysis because the trader can rely on what he sees in front of him rather than what might occur. Using technical analysis to trade on the Forex is making use of charts (such as the candlestick, the bar or the line chart) to show how well the Forex has behaved (or in some cases misbehaved). With the knowledge taken from the technical analysis, the Forex trader then makes his decision.

The second type of analysis commonly used in association with Forex trading is the fundamental analysis. Using a fundamental analysis is like studying the foundation of a house to see how well the house is going to hold up. The chosen currency could be likened to the house-the interior walls, the electrical wiring, the flooring, etc., while the economic and political factors that make up a fundamental analysis could be thought of as the foundation.

Both types of analysis have been shown to perform well on the Forex so it's not a matter of right or wrong as a whole, but rather a matter of the investor knowing which analysis is right for him.