The following review of different categories of traders will show the benefits of technical trading:
The scalper is an individual who makes dozens of trades per day, trying to “scalp” a small profit from each trade by exploiting the bid-ask spread
Momentum traders seek to find pairs that are moving significantly in one direction on high volume and try to jump onboard to ride the momentum train to a desired profit.
Technical traders are obsessed with charts and graphs, watching lines on currencies or charts for signs of convergence or divergence that may indicate buy or sell signals.
Fundamentalists trade currencies based on a fundamental analysis, which examines things like macroeconomic factors.
Swing traders are also fundamental traders who hold their positions longer than a single day, a week or a month.
In the broader sense, traders are either technical traders or fundamental traders or a combination of the two.
A technical trading theory, among technical analysts, sometimes called “chartists” or “technicians,” is that future price movement, in a currency pair that can be predicted from historical prices and volume data. While no one knows for certain when, or even if, history will repeat itself, there are traders who have used a technical analysis to amass fortunes trading currencies, stocks, futures and commodities.
But can one identify these patterns and trade them profitably? This is a skill you need to acquire from an experienced technical trader and trainer like my humble self.
Fundamental trading thus is a method of evaluating a currency that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the currency’s value, including macroeconomic factors (like the overall economy and industry conditions) and the country’s specific factors (like financial condition and management).
The goal of performing a fundamental analysis is to produce a value that a trader can compare with the currency’s current price, with the aim of figuring out what sort of position to take with that currency. This set of traders must look out for economic news and others that can cause much volatility in the market. This method of currency analysis is considered the opposite of technical analysis.
If you may ask me which class I belong to or prefer – it is the technical group. This is based on the fact that I understand charting system very well. I have been able to teach it and profit from it. I refer you to the weekly chart on EURUSD, which I have given a sell signal this week. Despite the expected pullback from profit takers on the weekly chart, the weekly technical analysis duly supports a downtrend.
Despite the fact that one can profit hugely from fundamental trading, the result can sometimes be disappointing. Examples are a cut in interest rates during a recession period. This ordinarily could have been negative for the currency but was positive because it was meant to be a stimulant. A lot of factors that a trader may not be privy to are inherent in fundamental trading.
Hence, forex trainers must be able to teach prospective traders good technical market analysis in order to have confidence in the market.
Remember the opportunity Eagleglobalmarkets – EGM has for you to trade with the local currency – the naira. Training in this is available on their CloudTrade platform. Register on this link http://track.eagleglobalmarkets.com/?t=5PtQoRvk and earn your N10,000 bonus credit
Forex trading remains the best option for high yield on investment at this economic downturn period. Come up and let us manage your account technically.
Market tips for the week Monday 17th October – Friday 21st October 2016
Entry (SEP) and exit (TP/SL) could also be at trader’s discretion.
GBP/USD (SELL): SELL limit@ 1.2234-1.2270 TP1: 1.2000 TP2: 1.1930
EUR/USD (SELL): SELL limit @1.1040-1.1060 TP1: 1.0820 TP2:1.0777
For enquiries call 01-3429029, 08039391041, 08148405500 or send a mail for details to firstname.lastname@example.org or email@example.com. You can reach Eagle Global Markets for enquiries on the naira platform on 01-4406299.
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