So, you’ve been learning a lot. You’ve heard about the history of forex, how prices are affected, how the different sessions work, and more.
This is all very important to trading, and necessary knowledge to have. But let me ask you something – are you getting tired of hearing about it? Do the terms bore you? Does all of this knowledge seem unnecessary, or are you still excited to trade?
It’s important to be honest with yourself, because this is your chance to turn back, and pursue something else that might be more exciting to you. Trading can certainly be exciting, but it does take discipline to learn and strategize and adapt to the market, and continually build upon your knowledge base – and it isn’t for everyone.
There isn’t anything wrong with going to work, even if your boss isn’t the favorite person in the world. Sure, your job might not be that exciting, but at least you don’t have to risk your own money, right? You can always count on that reliable paycheck, even if you have always wondered what would happen…
If you made that big switch. The “switch” being, deciding to try this out, and play your hand in the most active market in the world, and use your mind to buckle down and find opportunities that can lead to you working for YOURSELF, for once, and taking the risk to do so.
It's important to remember that with the market, you have to forever b curious. You can’t suddenly decide that you’ve learned enough about the market. Sure, you might end up becoming successful, and have set up a great risk-reward system, but ultimately, you have to always want to learn more. This is very important to remember as a trader.
Okay, so are you in? Good.
Here are the three main types of forex analysis:
technical analysis,
fundamental analysis,
sentimental analysis.
Now, there are all sorts of different traders that debate which strategy is better, and which one that you need to rely on more – but to be honest, you need all three.
Think of it like a three-legged stool. You should have an understanding of all three, otherwise everything breaks down, and you fall of the stool, and you fall on your face. You certainly don’t want to fall on your face when it comes to the market, because this is YOUR money you are talking about.
So remember – even if you have a favorite method, make sure that you think about all three types of analysis, or you could end up losing a lot of money.
