Forex (short for Foreign Exchange) is the most traded stock exchange daily event. In an approximate estimation, more than $3 million were traded and exchanged in a single Forex day.
It is a big deal in terms of Foreign exchange, and novice investors all around the world are testing the waters. Trying to discover ways of predicting accurate trading options to indulge in.
Risk management comes to comprehending the Forex movements and playing the cards right. Get an overall guide on how to do so in the excerpt below.
What Is Forex Trading?
Forex or Foreign Exchange Trading is decentralized trading on a global front. It is carried 24/7 throughout three time zones and prominent economic countries. Traders from all around the world buy stocks in one currency and sell in another, depending on the demand.
During busy hours the volatility was high, and prices fluctuated. Therefore, if one can take
The three main time zones which you can look into are:
- New York: 1:00 pm to 10:00 pm UTC.
- Sydney: 9:00 pm to 6:00 am UTC.
- London: 7:00 am to 4:00 pm UTC.
- Tokyo: 12:00 am to 9:00 am UTC.
UTC is a Universally Coordinated Time Zones. The trading generally begins at 6 am every day, which is when many traders set the tone of their respective exchanges for the day.
How To Predict The Outcomes Of Forex Trading
Here are the key methods of predicting Forex trading, as elaborated by pros who have been trading for years.
1. Choose The Right Currency Pair
The best part of Forex trading is currency pairs. You can buy and exchange with different currencies. So, analyze the market, and choose the one which will make you the highest number of investors; this will automatically hike their currency.
- Selling your stocks with that currency will help you profit. So, how will you know which currency is doing better than others?
- Check the country.
- Go through their currency economic growth.
- The number of participants during that time zone.
2. Weekend Analysis
Forex is at the top of its game, with high volatility and high investor participation during the weekdays. This means the weekends are for you to start position trading.
You start making long-term plans. Do not brandish in every direction; rather, choose a market and start taking data from the Forex history of the previous week. You do not react but let the situation unfold for your survey.
Peruse through some other sources of prediction in dự báo thị trường ngoại hối to prepare yourself for the next Forex.
3. Keep The News In Check
By news, we are not just talking about the Economics Times and the business section of every Chronicle. There is no shame in admitting that simply looking at technical data and doing mental math can be monotonous and exhausting.
Instead, we prefer you to also give the geo-political pages a flip. Here are some economic components which can determine the demand and supply for the companies in a country.
- Inflation rate.
- Current political state.
- New financial policies.
- Unemployment rate.
- Employee wages.
Currencies have no value without their respective countries’ financial backing. Plus, big economic events also play a big role in this matter. So, be extra alert and cautious during the financial year.
Difference Between Fundamental & Technical Prediction
The difference between fundamental and technical prediction is simple. In financial prediction, you are taking the state of the country, the economy, the political agenda, and the inflation rate in mind. Because any political conflict can make a huge difference in the economy.
Technical predictions, on the other hand, have to do more with analyzing numbers of previous trades. For example, counting the profit and loss rate and taking help from technology to predict.
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Source: Vietnam Insider