At FXDD we don’t claim to be able to see the future, but we do pay special attention to global trends as they are developing, and strive to provide insight that you may not receive from other Forex brokers. We don’t have a crystal ball, but at FXDD, we do understand that the right approach can make all the difference in the world.
Global trends alone can be difficult to identify, but FXDD knows that taking it to the next level is even more difficult. Once you identify the global trend, i.e., that a market condition is in place and moving up or down, the test is to understand its impact on currencies.
FXDD recommends traders use a combination of technical and fundamental analysis to better anticipate where global trends are headed, and how this might impact the Forex market. While software programs and charts can certainly provide invaluable information, FXDD recommends adding the human factor to the equation.
There are some who say that using both fundamental and technical analysis simply puts the two at odds, making the effort counterproductive. At FXDD, we understand this thought process, but disagree with the conclusion. While some say these contrasting types of analysis are mutually exclusive, we see that many traders are instinctively combining the two.
Traders who pride themselves on technical data are also watching employment data and the decisions that come out of central bank meetings. And similarly, the fundamental trader is also tracking data to find an edge. While some may claim to have the magic formula that can be programmed into trading software, we believe it’s a combination of art and science that determines how things will play out in the Forex market.
A program could spit out technical data showing that Spain is having issues with its debt that will likely devalue the Euro, but FXDD would also consider fundamental analysis as part of the process. For example, FXDD also understands that the elections in France or a signal from Germany that it is working to help stabilize the Greek economy, may be enough offset the other news.
Traders can learn more about these types of scenarios and others by going to www.FXDD.com and signing up for FXDD webinars or taking FXDD tutorials on these topics. We urge FXDD customers to take advantage of our toolbox and our unparalleled customer service to be sure they understand the risks involved with trading based on fundamental and technical analysis.