You’ve learnt some history regarding forex, how it operates, and what influences price movements. This is obviously critical, but I’m sure you’re wondering, “When can I start generating money?”
Remember that your education will never end.
Learning never stops!
Three Types of Market Analysis
To begin, consider three approaches to analyzing and developing market trading ideas.
Market analysis is classified into three types:
- 1. Technical Analysis
- 2. Fundamental Analysis
- 3. Sentiment Analysis
There has always been controversy over which analysis is superior, but the truth is that you need to know all three.
It’s like trying to balance on a three-legged stool.
If one of the legs fails, the stool will collapse beneath your weight, causing you to fall flat on your face.
The same is true for trading.
When thinking about the market, you need three “brains.”
If your analysis on any of the three forms of analysis is poor and you disregard it, you will almost certainly lose your trade.
Next Lesson: What is Technical Analysis?