Forex... Analysis...
By ahgong
@ahgong (10064)
Singapore
May 21, 2009 10:29pm CST
Fundamental analysis is a way of looking at the market through economic, social and political forces that affect supply and demand.
Technical analysis is the study of price movement by studying the charts.
The definitions are simple enough in itself.
And looking at Technical analysis, there are many write ups on how to recognize certain conditions in the charts that would signal what the next movement may be.
Forex is all about volume and investor sentiments.
Reading various books on Forex trading, one thing that many of them are saying that Fundamental Analysis is one way to gage investor sentiments. But the write up on fundamental analysis is not very comprehensive in the few books I read.
Any gurus here have tips on what to look out for when reading the news, or looking at the economy reports to recognize market sentiments?
What kind of news would translate to a general buy sentiment for the currency that you are trading in?
What kind of news would translate to a general sell sentiment for the currency that you are trading in?
When you see news of layoffs, what does it mean?
When you see news of lower exports, what does it mean?
How about news contains both good and bad, for example, "Employment is up, but spending is still weak year on year"?
Please advise.
1 person likes this
1 response
@kun2349 (23381)
• Singapore
22 May 09
I can only tell u one thing, never over analysis.. Because the more u try to analysis on different angles, the more problems will be coming to u.. Always stick to one kind of analysis, so that it wont affect your judgement.. ONce your judgment is affected, u are bound to lsoe confidence.. ONce that happens, there isn't a need to invest anymore, for one will only be throwing money into the sea.. haha =D
THere are some news that will affect trading and buying etc, but it depends on where it's happening, and what's their main revenue coming from etc.. If a country is strong in their own currency, then all those decline in imports or exports, wont affect them as much, just like china..
If it's like singapore, everything needing support from other countries, if anything news break out concerning shortage of supplies, then we are bound to be hit hard.. That's the reason why, some countries are thinking of weakening their currencies, in order to attract imports coming in at a lower rate, and to boost the overall ecomony ^_^ haha
