Maybe we ever ask, how traders plan their strategy for their trade? Are they gambling for it?
The answer is NO.
They have strategy, not only gambling.
They used Forex Fundamental Analysis to make strategy. Fundamental strategy give them information about economic condition for various countries by statistic report. This statistic about how much the connection of economic and politic of various countries influence their currency and market. Because changing of various countries have directly influence to the market.
Forex Fundamental Analysis have 3 major factors
- The most important analysis is about economic position at this time and future, foreign investor and stock price
- Interest rate, this factor lively influence economic growth. If interest rate of currency increase, it means that the price of this currency will be move up.And this thing can make foreign investor to make invest and trust this countries.
- Comodities price from certain country. Why this factor indeed in three major factors? Because comodities from other country like gas, oil,gold and silver have big affect for other world market. And ofcourse it will be make influence for others countries. And remember that word market and foreign currencies changing so fast. So keep in update the information. Therefore you have good analysis