What is fundamental analysis?
Fundamental analysis is basing an evaluation of a good on important economic data. In forex trading we are talking about this data as economic indicators. Comparing the unemployment rate of 2 countries and trading their currencies based on this information is just one example of how you can use the fundamental analysis.
What is an economic indicator?
Before you start trading the forex market, there are a couple of questions that need to be answered. How to chose a boker? Should I use a demo account? What do I need to know before I make my first trade? Let’s talk about this things.
1. Choosing a broker
This is a personal decision for every trader. Some forex brokers offer different options and different benefits that can be very attractive for some traders while at the same time other traders may consider them useless. It is very important that you compare and analyze carefully every forex brokers options and to chose the one that you feel comfortable with.
When you start trading on the forex market there are a couple of mistakes that you must avoid. Below are the most common mistakes that occur in forex trading.
1. To much leverage
One of the best advantages of the forex trading is the posibility of using the leverage. One of the most common mistake the trades do is that they use to much leverage. Using to much leverage means that you make a big transaction when you have to little money in the account. If the market moves a little against your position that could result in a big loss for you.