As a forex trader you certainly cannot trade without the chart. The chart is exactly what gives you a sense of direction as to whether to go long or go short on a particular currency pair.

When looking at a chart, you will the current price marked with a line, and you will also the previous trend patterns with the time of that price at the base of the chart.

There are actually several chart patterns to help you with your speculation. The one you see often times is the bar chart. The bar chart is one with a thickened vertical line showing two small horizontal edges, one at the upper side and the other at the lower side.

These small horizontal edges indicates the opening price at the beginning of a particular time, and the close price at the end of that time period. The time period can vary very widely. It can vary from one minutes, to hours, to days, months, and years. But the choice of time period depends on you.

Another chart pattern you will see is the candlestick pattern. This chart pattern is mostly used because it provides the ability to forcast market prices. The ability is seen in the colors of the candlestick chart pattern. The color helps you know when the prices are going up, or going down, and then specualtions can be made. Also take note that it is placed over time.

You can also consider the point and figure pattern. This type of chart pattern gives you the ability to determine a change in market movement or direction. Just like the bar charts, you will see the similarities except that the Xs and the Os gives you this mentioned ability. You must also take note that with the point and figure chart patterns you will not be see the time period. This practically doesn't work with time like the other ones mentioned above.

Different people build their dependednce on these various chart patterns, which is a good idea. Everyone should not be using the bar chart, or the candlestick. They provide you with different price direction and market speculation features that will help you make the right choice on when to enter and get out of the market.

Also the study of these various chart pattern will help give you a combined accurate speculation of market trends, and direction. For those who just get used to one, you certainly may not be able to give a more accurate analysis of market directions.
Take use of these informations and let them get you to your desire profit making point in your trading experience.

Forex trading in carried out in currency lots. Every lot is approximately 100,000 US dollars of foreign currency. In order to be a ble to carry out trades on Forex market, you must have a margin account with a Forex broker.

Actually, this is like a bank account from which losses will be subtracted and profits deposited. The use of this account is instant, that is as soon as you open or close a trade position, losses are subtracted and profits deposited.

There are different regulations on margin accounts depending on your Forex Broker. Many Forex broker will require about $1,000 deposit to begin day trading a currency lot. The meaning of day trading as the name implies is the opening and closing a trade position in one day.

For a long-term position, may Forex broker will require about $2,000 per lot deposit.
In contrast to stock trading and other market, you need at least 50% margin account of your intended stock trade. But in Forex trading, you can control a large lot with just a small margin account. This is done through leverage. As an example i can open a 2 lot position with just 2% of the worth value.

The execution quality of the Forex market is very perfect. Because of the liquidity of the Forex market, many trade can be opened and closed at the current market price.
Although slippage can not be avoided in Forex markets, just like all other fast moving markets, many Forex broker's software have tried to beat it. That is you are notified of your exact opening price just before execution, and you will be given the opportunity to avoid or accept the slippage.

Your trade positions are confirmed immediately, and the internet user only needs to print a copy of these confirmations for record purposes. There are also many sayings about internet Forex trading being safer than the telephone trading. This is because you see the price it is, and you can decide to accept or reject it.

Also the telephone trading also has its advantages. In the case of internet disconnection, telephone calls can be made to your Forex broker to help you close or open trades.

You can be sure that your account informations are secure because Forex brokers uses systems that are protected by firewalls.

Fundamental analysis is simply the examination and observation of the main elements that affects the economy of a specific instrument. This observation makes an attempt to forecast the action of price and market movement by simply analyzing economic indicators, societal factors, government policies, and many others with the market cycle. Looking at the forex market, you will discover that it is affceted by many factors which in turn enable analyst to forecast correctly the next market movement. In an instance, looking at a clock may seem very simple in order to tell the time, but a fundamentalist will tell you what brought about that time, and what it will be in the future. Sounds simple right?

Actually, forex analysis is divided into the technical analysis and the fundamental analysis. Most of the time, when you introduce yourself as a forex trader, they ask you if you are a technician or a fundamentalist, this is the situation of the market operation.

These two methods are interdependent. The fundamentalist will in a way also keep an eye of price charts, while a technician also rely on certain economic information and data, that affect the price of the market.

You can be certain that fundamental analysis will only give you a view of the conditions of the market and where it might be heading, but it won't give you an exact price market situation. Looking at this example, when you start to analyze an economic forecast of an employment report, you would be needing to understand the forces that bring about this change, but another important thing is getting to understand how it relates to developing a strategy that works for you on how to trade the currencies involved with your analysis. That is getting into the market, making profits and getting out of the market.

A forex trader that uses fundamental analysis understands that his analyses are right. By siply analyzing the interest rates, and excahnge rates of financial institutions which as caused by disasters, unemployment, and many other factors, he gets his conclusion and knows when to get into the market for profit making.

Economic indicators are pieces of economic and financial data which are made know to the pulic by either the private sector or the governmnet. These informations which are published regularly help market observers in monitoring the situation of the economy. With the significance of these data, market prices can be greatly affected by volumes and prices tend to move in the direction of the effect.

Fundamentalist therefore keep their ears open, to get these data and information, so that trade positions can be decided.

Economic indicators have the ability to bring about great volumes of positions, and therefore move market prices in a particular direction. In order to keep track of these data, you must have a detailed information on dates and releases of these data, and how they can affect prices.

Keeping track of these data of economic indicators can enable you make meaning out of some irrelevant and unexpected price movement in the market.

Example of these indicators are as follows:


1. The Gross Domestic Product (GDP)
With the use of GDP, traders can know the pace of a country's growth, and this is one of the major indicators of fundamental analysis.


2. Industrial Production
This shows the strength of a country's industrial ability. The companies, factories, industries, and their uses are all measured in this indicator.


3. Purchasing Managers Index (PMI)
This indicates a country's manufacturing sistuation. These situations are export orders, import orders, prices of commodities, employment, and many others. This indicator is also divided into 2, which are the manufacturing and non-manufacturing sub-indices.

Other indicators includes Producer Price Index (PPI), Consumer Price Index (CPI), Durable Goods, Employment Cost Index (ECI), Retail Sales, and Housing Starts.