The Three Most Important Types of Forex Analysis You Need to Master ASAP

Forex analysis is the bread and butter of any successful trader’s research, huge piece of the puzzle if you’re going to create real wealth from this investment vehicle.

Sure, plenty of people get lucky every now and again trading Forex pairs and playing the market with a real random approach – just sort of hoping that lady luck will shine on them every now and again.

But that’s no ticket to consistently beating the market, winning your trades, and learning from the decisions you make (good or bad) to make better, smarter, more profitable trades moving forward.

All that comes down to Forex analysis.

At the same time, there are three critical types of analysis you have to master if you’re going to have consistent success in the market today.

Fundamental Analysis

Fundamental analysis is the first piece of the puzzle.

Take advantage of by all of the major traders (including institutional money), the fundamental analysis you’ll find on the Forex markets these days revolve around interest rates, GDP numbers, and other bits and pieces of economic data regarding the currencies you’re looking to move.

Fundamental analysis is so much more than just looking at the news to see which way the wind is blowing, though.

You want to make sure that you were keeping your finger on the pulse of each currency pair your thinking about trading, checking to see what the sentiment is like around the world, and regularly updating your fundamental analysis so that you don’t get caught making moves based off of “cold info”.

Technical Analyses

Technical analysis, on the other hand, is where the overwhelming majority of people focus when they first get into Forex trading.

This is the kind of Forex analysis that revolves around looking at charts, looking for technical indicators, looking at Forex signals, and other bits and pieces of “hard data” that track how Forex moves every day the market is open.

A lot of this kind of analysis is automated now and much more accessible to newbies they are not ever before.

That doesn’t mean that you shouldn’t learn how to do manual technical analysis on your own, though.

This kind of skill will let you double check all the information you’re getting from third-party sources, helping you confirm this data with your own trading disciplines so that you know it’s the right info to move forward with.

Weekend Breakdowns and Reviews

The third bit of Forex analysis you’re going to want to do has everything to do with analyzing your own trades, looking back at the moves you made in the decisions that led you to them, as well as planning how you are going to move forward.

Far too many people ignore this bit of Forex analysis completely, never looking back at the trades they’ve already made (and the ones that want to make in the future) to learn from their actual experience.

Don’t make that same mistake.

Weekend breakdowns and reviews will make you a much Forex investor (faster, too) than maybe anything else.

Three Simple Things That Make You Better at Forex Trading

Believe it or not, it’s a lot easier to enjoy real success in the Forex trading world these days if you focus on three core fundamentals – the three things we highlight in this detailed guide.

No, these three things aren’t going to guarantee that every Forex trade you made from here on out will be a winner.

That’s not how the Forex game works.

But we can tell you that if you implement these three simple things in all of your Forex trading you’re going to be a whole lot more successful than you would have been otherwise – and it won’t take you long to start piling up some real wins while you pad your bank account.

Bundle Up Some (Small) Loses

For starters, it’s never a bad idea to bundle up a couple of small losses every once in a while just to remind you that your money is ALWAYS at risk.

One of the biggest mistakes that new people to the world of Forex trading make is forgetting that their money isn’t necessarily going to produce a real or consistent return.

Sure, that sounds crazy on the surface.

After all, everyone knows that there’s the potential for loss in investing, right?

Logically that’s right on the nose – with humans often find themselves making decisions based on anything but logic, fooling themselves into thinking that they just can’t lose when Forex trading (especially if they haven’t in a while).

It might not be a bad idea to throw a couple of bucks at high risk trades just to see what happens.

If you win, remember that lady luck had her hands firmly on the wheel. And if you lose, remember what it feels like – and remember that your money is always at risk with every move you make.

That mentality will force you to be more serious and more focused on all of your Forex trading.

Ride Positive Feedback Loops

On the flip side of things, don’t be shy about writing positive feedback loops when you hit a homerun.

If you have taken the time to research and execute successful Forex trades there’s nothing wrong whatsoever with rewarding yourself, taking the time to pat yourself on the back, and really embrace just how much of a big deal that is.

Too many people start to get a little bit “jaded” in the world of Forex, especially if they haven’t been having a lot of luck of late.

It’s important to give yourself an opportunity to sort of lean into those wins and successes, only to fuel yourself to do everything possible to make sure those successful trades keep happening.

Always Analyze Your Previous Week on the Weekend

At the end of every week you should take a couple of days to analyze the trades and positions that you made.

Have a look at not only the actual Forex trading that you did, but the research that led you to make the decisions that you’ve made as well.

Doing this at the end of the week gives you the advantage of looking back at these trades with information you wouldn’t have had access to in the moment.

You’ll be able to tell pretty quickly if your decision-making was sound or a little flawed and then can adjust those kinds of decisions moving forward based off of this analysis.

A Forex Market Survival Guide

It’s not hard to get excited about everything that the foreign-exchange (Forex) marketplaces has to offer these days.

More and more people are diving headfirst into the Forex market than ever before, looking to cash in on the kind of action that only this investment vehicle can provide.

At the same time, though, there are plenty of “newbies” that are getting absolutely crushed by the Forex market just because they’re not sure of how to make heads or tails of everything swirling around them.

That’s why we put together this quick Forex market survival guide.

What’s Your Forex Trading Style?

Before you do ANY trading whatsoever you really need to get crystal clear about what your Forex trading style is going to be.

Just as you wouldn’t set out on a cross-country trip without knowing what your ultimate destination was, you can’t expect any real success in the world of investing if you’re not crystal clear about how you’re going to make your goals come true.

Are you going to be a day trader to avoid having to sleep on a Forex pair that could go belly up overnight?

Are you going to be a position trader that wants to take more of a “long-haul” look at the markets to make well-informed moves?

Are you hoping to “trade the notes” every now and again when signals or a red-hot tip comes down the pipeline?

No matter what your trading style is you need to get crystal clear about it and then tailor everything you do in the Forex world to that kind of process.

Always Plan Your Exits

Everybody in the world of Forex as a great idea when they want to get in on specific trades but most have no idea when they need to “pull the chute” and selloff a position – exiting it completely to make a profit or to stop a loss.

This is a huge mistake.

You would never jump into a Forex trade randomly, which is exactly why you shouldn’t “trust your gut” to plan your exits from positions, either.

Instead, you’ll want to have a rough outline for the kind of market conditions you’ll be looking for to exit your position profitably (or to stop a significant loss).

You can always adjust these plans on-the-fly depending on market conditions (that’s never a bad idea). But without this kind of preplanning you’re likely to flounder and waste some pretty good profit opportunities because you waited too long or not long enough on a position.

Learn to Love Expectancy

Expectancy in the world of Forex market trading is a very specific formula that can help you figure out just how consistent and reliable your trading system is.

Obviously, it’s not a perfect predictor of success or failure – market conditions are always going to influence whether or not you win or lose with different positions. But it will give you a better idea of whether or not your overall strategies are effective or need to be tinkered with a little bit.

Take your last 10 trades and run them through the expectancy formula (you can find expectancy calculators online pretty easily) to figure out what your win ratio looks like.

If it’s not where you want it to be, don’t be shy about adjusting your strategy to dominate the Forex market moving forward!