Continued from page 1
Technical Analysis is based on idea that trends through history will continue. A FOREX investor will notice that a certain currency is very strong and seems to be rising at a normal rate. The same investor will also suppose that currency will not decline in value, and will continue to rise, as it has done in past. The investor then purchases a large amount of that currency and expects to make a profit. This investment entails a large assumption but is relatively safe.
Fundamental Analysis is an analysis of an entire countries situation. Investors utilizing this technique look at situation of country in which currency finds its base. Factors such as countries economic status, political status, and global status are taken into account. For example, a Fundamental Analysis investor would not invest in currency from a country that just overthrew its leader and is in political shambles. Although this investment seems logical, it does not take into account one of fundamental elements of FOREX trading. FOREX currency values are largely determined by investors. That being said, Fundamental Analysis assumes that other FOREX traders will view a countries situation in same way and respond accordingly.
Benefits of FOREX
FOREX can be very beneficial to a variety of people. FOREX trading can gain investors a large amount of money either over a long period of time, or in a short period of time. Investors who choose to invest in FOREX are generally well informed about market and understand current situations in many countries of world. Investing in FOREX is simple and highly recommended for anyone who wants to enjoy profits from top-notch investments.
Mary McDowski enjoys writing about various investments and strategies. Ms. McDowski believes that there is great potential in FOREX investments.