The fundamental and/ or technical analysis part 2 of 2

At the same time one should not consider fundamental analysis just as an analysis of the economic situation in the country itself. A far bigger role in the FOREX market belongs to the expectations of the market participants and their assessment of these expectations. Various prognoses and bulletins, issued by the participants, have a strong influence on the expectations. Very often an effect of the so-called self-filfilling prophecy occurs when market players raise or lower the exchange rates according to the prognosis. But a deep and thorough fundamental analysis is available only for big banks with a staff of professional analysts and constant access to a wide field of information.
In spite of these different approaches, both forms of analyses complement one another. Traders who act on the basis of a fundamental analysis, have to consider some technical characteristics of the market (the main rates of support, such as resistance and resale), and supporters of the technical approach to the market must track the main news (interest rates, important political events).
The main merits of the FOREX market are:

• The biggest number of participants and the largest volumes of transactions;
• Superior liquidity and speed of the market: transactions are conducted within a few seconds according to online quotes;
• The market works 24 hours a day, every working days;
• A trader can open a position for any period of time he wants;
• No fees, except for the difference between buying and selling prices;
• An opportunity to get a bigger profit that the invested sum;
• Qualified work in the FOREX market can become your main professional activity;
• You can make deals any time you like.

articles provide by: VIGRI Ltd.