Nowadays, when concepts such as analysis and research have become very important, the most important condition of being successful is predicting the developing and rapidly changing market conditions correctly. In terms of Forex analysis, it is essential to be able to interpret the picture drawn by the market and to have an up-to-date perspective, to catch up on many clues about the future and to make the right decisions.

A debate is still very common in the financial markets, which is well known among Forex experts. Yes, you guessed it right, I’m talking about the various tools used to analyze the market and predict future trends, Technical Analysis and Basic Analysis.

A debate is still very common in the financial markets, which is well known among Forex experts. Yes, you guessed it right, I’m talking about the various tools used to analyze the market and predict future trends, Technical Analysis and Basic Analysis.

Before we go into the question of which analysis method is more effective, let’s look at why analyzing the market is so important to be successful in Forex. There is a widespread and general misconception that Forex trading resembles casino gambling. This is a flawed comparison in many respects. The first and foremost reason for this is that due to the many resources available to a Forex trader, the chance factor loses its importance.

Using Different Analysis Techniques

By putting market analysis at the forefront of your trading system, you are transforming all your trading experience from a simple guessing game to a completely logical and profitable investment.

Now that we are convinced of the necessity of Forex market analysis, we can switch to what type of analysis an investor should use. In the case of Forex market analysis, there are basically two of thought. Firstly, there is the paradigm of technical analysis that supports the idea of ​​‘Your Trend is Your Friend‘. The main idea is that Forex trends will continue uninterruptedly until they return. It is best to take advantage of this trend if there is a certain trend in the market. According to technical analysis, the trend is likely to continue. On the other hand, experts who believe in basic analysis will say that you should focus on watching news and making sense of them rather than reading graphics. The basic analysis concept is based on the idea that marketers are news and current events, as well as their mobility in the market.

Finding What Works For You

So, which side should you listen to as a new investor? In my opinion, which side you choose, literally, does not matter much. Although both technical and fundamental analysis is of the same importance, since an investor cannot follow both graphs and news at the same time, the most useful is to find the middle way.

Yes, there are certain trends, and yes, these trends can show what the future will bring, but it is a fact that these trends are influenced by the factors involved in the basic analysis.

So, as a new investor, it’s critical that you keep it open all the way and implement it, and trade with a few on-screen displays at the same time. You must have a trading platform on the first screen. On another screen you should find real-time graphs showing the latest trends. Finally, you should also have a screen for the latest global political and economic developments.

Of course, you can’t focus on all three screens at the same time, but it’s important that you don’t ignore any of these three and effectively balance them. This will enable you to establish a more balanced and versatile trading system that will ultimately bring you a considerable income.