Technical Analysis - The Fundamentals Of Technical Analysis

By Gabriela Desouyez

While there can be hundreds of techniques utilized by forex trader to predict price movement, they fit in to one of three varieties of traders.

They are either from the school of Technical analysis, fundamental analysis or they employ both disciplines. While forex trading can be pulled off successfully when using only a single kind of analysis, traders that understand both fundamental plus technical analysis benefit greatly.

Simply put, Technical analysis is the study of historical data, volume in addition to price to establish current in addition to future forex trends. Strict technical traders put their faith purely on these factors with no consideration to external factors.

Nonetheless, the system the charts are viewed plus the forex indicators utilized for such an analysis are exceptionally broad. Technical analysis also includes support along with resistance, daily pivots, trend lines along with pattern formations.

Strict Technical forex traders are only concerned with these factors along with do not take economic factors into account, unlike Fundamental forex traders. Trend lines and the methods employed to spot them play a huge part in technical analysis. Trend continuation in addition to trend reversals are two prime fields that utilize a myriad of forex indicators plus tools to ascertain.

Technical traders usually open a lot more trades than long term fundamental traders since they respond to a variety of changes in the market. As such, they can be considered short term traders in most cases. Of course, scalpers from both disciplines open the most number of trades per month than any type of forex trader. We will touch on scalping another time.

Technical analysis is also the most recognizable form of market analysis in the world at the moment. Why is this so?. Many forex traders find technical trading aspects easier to grasp than its fundamental counterpart. A good grasp on fundamental economics is not necessary. - 23200

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For If you want a thorough evaluation on Fundamental Analysis as well as other major Technical Analysis, please Click Here or visit the authors forex portal at www.i-forex-trading.com

Trading Options " Road To Millions Or Short Cut To Bankruptcy?

By Johnny M Junior

Trading options has several advantages over trading in ordinary shares (stocks). This method of trading can also be high risk if you do not know what you are doing. We will briefly look at the different scenarios.

The popular advantage of options is that you can make a lot bigger profits than if you should invest a similar amount of money in normal shares. The reason for this is what is called leverage in trading circles. Let us say you've got only $100 to invest and the price of your favorite stock is $100. So you can only buy a single share. Not a big deal.

Let's now say a call option on that stock sells for $.20. If this is true, then you can control 100 shares of that stock for only $20. Just imagine the leverage you have. This is what attracts many investors to option trading.

Buying just calls and puts can be a very risky business. We find that it is much safer to trade option spreads. To learn more about option trading, there are many free videos on Youtube. Some of the best will be by sjoptions. They focus on safety and low risk trades.

Options traditionally used to be utilized to hedge another investment you already have. Let's say you have shares in a company whose share price jumped up by 25% the past month. By investing in put options (which will cost you a fraction of the cost of 100 shares) you can protect your investment. The way it works is that, should the share price drop, the value of the put options will rise with the same amount. Your net investment will therefore remain the same. This is a rather old strategy. In today's world, there are many better ways to hedge a portfolio. We prefer using spreads to just buying calls and puts. - 23200

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Find out more about option trading and how can work for you. With the right option trading system in place you will make money. Set up your future today with a fantastic way to earn cash!