The beginning of your adventure with trading on the forex market should be preceded by a very solid dose of knowledge and education. Over the last few years, as Forex trading has gained popularity, hundreds of individual investors, crushed by the quick-earning potential, have entered the market and lost their savings due to ill-considered investment decisions, lack of basic knowledge of technical analysis or investment psychology. Below we present a short guide on what knowledge and skills a trader should have before opening a real account.
Technical Analysis Technical
analysis of financial markets is an area that focuses on the appropriate identification of price relationships and patterns that have occurred in the past in order to reuse a given regularity in order to make a profit. In other words, technical analysis is reading a chart after the rates of a given currency pair are positioned over a certain period of time. Technical analysis can be performed on the basis of regular patterns, candlestick patterns or supporting tools such as indicators and oscillators. More information about technical analysis and the current situation on the currency pairs can be found at this link.
We can only have a truly complete picture of the situation in a given currency pair when we combine the knowledge of technical analysis with the wider economic scale provided by fundamental analysis. Fundamental analysis is an area in which we value a given currency pair, based on the economic and social situation and comparing it with the current market situation. Fundamental analysis becomes extremely useful when using long-term strategies, but if we focus on day trading, the economic calendar, which is a kind of treasury of knowledge about what business and economic events will take place, can help us in decisions about entering the market or waiting for increased liquidity. on the market. Below is a reliable and detailed economic calendar that every trader should use every day.
General rehearsal – demonstration account
Apart from gaining the necessary knowledge, practice is also important – gaining skill in navigating the investment platform, getting to know its functionality. It is worth starting your adventure with trading with a demo account, where we trade a virtual deposit on a real situation on a currency pair. After a few weeks of gaining experience, we will be able to open our first investment account. Go to the Saxo websiteif you want to learn more about the forex market, forex accounts and the trading platform.