There are two kinds of FOREX investing strategies:

TECHNICAL ANALYSIS
FUNDAMENTAL ANALYSIS

TECHNICAL ANALYSIS:

Technical analysis is mostly undertaken by small and medium size investors.
A technical analysis considers factors that are actually affecting the market rather than factors that can affect it. Thus the price quoted reflects all the factors that have influenced it. Only market generated facts and figures are taken into account and factors like fear, hope, expectations or other changes are not considered. Thus the analysis is generally based on these suppositions:

• Price reflects all actual market movements. That means price includes everything known to the market like supply and demand of foreign exchange, political factors, trade agreements etc. It is not concerned with what resulted in change rather deals with actual changes. It works on the assumption that price can take only one of the three directions:

 Upward
 downward
 sideward

• It rest on those market patterns that have been identified as significant. That means those factors which are repetitive in nature or will produce desired results.

• History always repeats itself as human psychology changes very slowly with time. That is market movements are predictable.

VARIOUS TECHNICAL INDICATORS ARE:

1. RELATIVE STRENGTH INDEX:

It takes into account the ratio of upward and downward movements in index and expresses it in the range of zero to hundred.

2.CHARTS:

Charts include various hills, slopes, curves that develop on a chart over a time and reflect some major and minor changes in pattern. Some of the chart formations include:

• TRIANGLE
• RECTANGLE
• HEAD AND SHOULDERS
• DOUBLE TOP AND BOTTOM
• SAUCERS
• V

3.GAPS:

A gap represents area on a bar chart where no trading took place.

• UPGAP: it is formed when the lowest price on a particular day is more than the highest price of previous day.

• DOWNGAP: it is formed when highest price of a certain day is less than the lowest price on previous day.

NUMBERS:

Various number theories are used in technical analysis like:

• Fibonacci theory
• GANN

STOCHASTIC OSCILLATOR:

This indicates the overbought or/and undersold condition. It uses a scale of zero to hundred percent.

FUNDAMENTAL ANALYSIS:

It is the one where current economic, political, financial situation of the country of currency is studied. A country’s economical and political condition depends upon many factors like the interest rate, unemployment level, exports and imports, per capita income, percentage of population living above and below the poverty line, inflation, trade relations with other countries, tax policies etc.

A fundamental analyst studies and evaluates all these factors before coming to any decision. Thus it helps in long tem decision making and making profits in short term by extra ordinary developments.

Some of the indicators that help in fundamental analysis include:

1. GROSS DOMESTIC PRODUCT:

It reflects total market value of all the goods and services produced in a country during a given year.

2. RETAIL SALES:

This reflects total receipts by all the retail stores in a country.

3. CONSUMER PRICE INDEX:

It reflects change in prices of consumer goods.

4. BUSINESS CYCLE:

It reflects various phases through which a business passes. These phases include:

• EXPANSION
• PEAK
• RECESSION
• DEPRESSION

5. MONETRY POLICY:

It controls the supply of money in an economy.

Trading successfully needs knowledge, time and understanding of a market. You cannot earn continuously in a Forex market due to its volatile nature. Thus as a trader you should try to consider both technical and fundamental strategies of forex trading and make decision based on market expectations and trends. Try trading with money that you can afford to loose without any regrets. Trade with logic and if you are not sure quit and take rest for some time.

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The answer is no. It is not necessary to sit at a computer all day. There are a number of factors to consider, but the general rule of day trading is to trade when everyone else is talking. In other words, trade in the morning.

As with all investments, day trading is risky – in fact, is one of the riskiest forms of trading outside. Stock prices rise or fall according to market behavior, which is totally unpredictable. Day traders rapidly buy and sell stocks hoping to make a profit in minutes and seconds that have these specific stocks. Simple to do, in theory, harder to do in practice.

If you are constrained by a small amount of capital, you may not be able to buy large quantities of a stock, but buying just a small amount can increase the risk of a loss. And obviously, it is impossible to predict with certainty what actions will result in profits and in losses. Even the best traders must learn to accept the results.

It is also important to know that day trading is the number of shares instead of share value that should be the focus. If the trade of the day, you will experience losses, but even for more expensive units, the loss should be marginal, because prices tend not to vary to an extreme degree over one day.

Offers day trading industry in a variety of stocks and shares. Here are just a few:

Buying Growth Stocks – Stocks made a profit, they continue to grow in value. Eventually, these actions will begin to drop in price, and an experienced professional can usually predict the future of this type of action.

Small Caps – Stocks of companies that are growing and show no signs of stopping. While these actions are generally cheaper, they are a very risky investment for day traders. You would be safer to go with bold letters and / or mid-caps, which are much more secure and stable, thanks to a bonus.

Unloved Stocks – the company’s shares have not had a good performance in the past. Traders buy these stocks, hoping to generate profits, if and when the stock rises in value. As with small caps, shares loved one can be a risky choice for day traders.

These examples are not your only options when it comes to day trading stocks. The best way to determine which material is right for you is to invest some time for careful research, knowledge of industry standards, a solid strategy and a disciplined trading plan.

The key to successful day trading is to be prepared. Knowing as much as possible about the industry before you actually start trading. You must learn to operate only when the market is showing signs of law, and only when the volume of activity in the market supports a success u003ca href u003d \http://www.rockwelltrading.com/daytradingcoach/01_dtc_landing_page.html \u003ecomercial u003c / a u003e opportunity.