There are a lot of ways to make money in the forex market. For example, there is a technical analysis, statistical analysis and fundamental analysis. Each of them allows to make profits. However, in order to make a stable and consistent profit you need to know them all. Why? Because financial markets are highly efficient. It means that they always reflect the ongoing situation in the current economy. Although it makes sense, there is still a chance to grab a few pips from the markets moves. In the end, if markets reflect the current situation in the economy then there must be people who move them to those points, right?
A fundamental analysis is used for trading in a long-term. By looking at the economy in a long perspective, it is possible to tell where it is heading. Traders can see financial bubbles when prices begin to sky-rocket. They can also predict when a time to buy comes after a total collapse. A thorough analysis of speeches made by central banks governors provide additional clues for further developments in the markets.
A short-term version of fundamental analysis is called news trading. This strategy is also very popular among traders especially when it comes to trade a “story of the day”. Markets can move in one direction for up to 24 hours when some big news hits the market because it takes time for all three major markets (European, US and Asian) to digest it.
A statistical analysis is also a great one. It allows to fully automate trading by basing it on the statistical anomalies. For example, did you know that Mondays are slightly more risk-averse than the other days? In more than half of the times Eur/Usd goes down on Mondays. It is just one anomaly but there are hundreds of them. By learning and using them it is possible to make money on autopilot with the help of trading robots.
Then there is a technical analysis which involves “reading” charts. It works well as well especially on high timeframes like daily charts. Trend lines are the best leading indicators that help to spot a next major move. There are also fibonacci retracements and extensions which provide additional levels when trend lines gets broken and prices continue their moves in a new, unchartered territory.
The more knowledge you have, the more trades you can make. More trades = more money. But trades certainly should be based on a strategy that worked in the past. You might think that it takes too much time to learn all of these strategies to make money. It is true but what if you could use most of the above strategies without mastering them? It might seem unbelievable but it is possible! There is a great forex and stocks broker eToro. It allows anyone to copy trades of other profitable traders automatically. You only need to setup a desired level of risk and you’re ready to go! It is called trades copying and it’s easy and free.
It is a very innovative technology and it works. Just think about the following: the forex market operates 24 hours a day Mon-Fri but it is impossible to sit and watch news and charts all day and night. So what if you could trade, let’s say, only 8 hours during a European session? The American and Asian session would be out of reach. So, if you’ll copy trades of American and Asian traders while you’re resting then you’ll continue to participate in a trading activity without even watching the screen. The same thing happens when you’re trading and fellow Asian and American traders can take the advantage of your trading. So everybody wins! Moreover, you can just copy trades of others without trading yourself at all. You should definitely try this broker who offers all these facilities in one place. See more details…