As long as there are traders and financial markets, there comes the necessity for traders to choose which approach works effectively for market analysis
And which approach works best
The question now is, which approach is good for following
With the knowledge there are more categories of rewards
But in this class we'll be discussing what works for me, and I hope it will work for you too.
My approach is direct and logically based on common sense and market conditions
There are two forms of Trading analysis in most cases
FUNDAMENTAL ANALYSIS
TECHNICAL ANALYSIS
Note them down!!!
Let's start with the first one
FUNDAMENTAL ANALYSIS
These fundamental indicators are the major aspect of the economy including job availability, housing, unemployment rate, exports, imports, consumer power of spending, manufacturing capacity, commodities interactions and prices.
In short, anything affecting economy.
We see all these News on CNN, Bloomberg, CNBC and other news platform
Those into Crypto Trading in the early days between 2013 to 2014 backwards would tell you that u only make money when a Coin is appreciating.
Though recently some crypto exchanges are now improving
But in Forex, money is arrived both ways.
If a Currency pair is gaining momentum, a long is made on the pair
When a Currency is also depreciating based on the News, We go short on the pair.
Remember, to Go Long means we Buy
While
To Go Short means we Sell
When it comes to fundamental,one big news event is NFP Which stands for non farm payroll
Non Farm Payroll is one of the Biggest News that every trader awaits on
Let's start with understanding what NFP is
Let's talk about what the News entails
Please pay close attention and don’t let the lecture bore you as it would be a major foundation in your decision making about trade
It's a News that contains various data and statistics released by the US Bureau of Labor and Statistics
ie 12:30pm GMT
ie. 12:30pm Ghana time
ie 1:30pm Nigerian time
ie 2:30pm South Africa time
Just Calculate according to your Time zone
It also includes the Average hourly earnings of the workers in the US
This is also an Economic indicator because even if the number of workers didn't change.
Then lastly the data includes a revision of previous non farm payroll
Because investors compare these values together....
This also gives you an idea if the economy is growing or reducing
Now, let me breakdown the BiG English and terms used...please pay attention
INTERPRETATION OF NFP
When more people are employed it means that business ventures are growing and remember that these newly employed will be paid
More people will have money to spend on goods and services hence increasing the growth of the economy.
So this is just a Breakdown on What NFP entails and why it's so Volatile.....
It's always released 1st Friday of every month
No Forex Trader will fix his/her party on the first Friday of the month
So as Forex Traders, Never miss it.
If you are on your way to a particular place and it's almost 1:30PM Nigerian time
Just find somewhere to seat down pick up your Phone,Trade your NFP and continue where you are going
Happy Blogging and Reading 💥💥💥💥
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