Trading is meant for everyone and there is probably no easiest way of earning money in the shortest time span. But every other beginner cannot expect it to be a profitable business until and unless he/she learns the strategies and techniques associated with it. The best way to learn trading is from an appropriate institute where the entire process is taught from scratch. You just need to apply the right strategy at the right point of time to ensure profit in the process. Trading is simple once you learn the basics of it. There are two terms that are often used with the business of trading- Fundamental Analysis and Technical Analysis. The best way to learn technical analysis or fundamental analysis is only through practical exposure. Hence both theoretical and practical knowledge is emphasised at ICFM institute for learning trading.
Both Technical Analysis and Fundamental Analysis is a
trading tool or method that is said to predict the future price movement of the
asset. Now this asset can be anything like shares, forex or any other
securities. One of the best way to
learn technical analysis is by means of studying the previous market
data which help in predicting the future movement of the market. A technical
analyst takes into account past trends in the market to analyse the future of
the trading asset. Technical and fundamental analysis is undoubtedly among
the best way to learning trading strategies
but both are different in different ways. There are different charts or frames
that are used by these analysts to predict the future. These includes 5-minute
chart, 15-minute chart, hourly chart, 4-hour chart and daily chart. For
example, traders who usually prefer intraday trading or day trading look for
shorter time frames and hence uses 5-minute chart or 15-minute chart. Apart
from these charts, there are various other technical indicators that can be
used to predict the future market movement. One of the widely accepted
technical indicator is moving averages. Trading strategies can probably make
use of more than one moving averages. The higher this number is, price movement
will be more pronounced and vice versa.
Some other widely popular technical indicators
The best way to
learn technical analysis is by utilizing technical indicators. One
such indicator is daily pivot point indicators which can be used to identify
support and resistance levels which are used by traders to analyse price
movements. Usually, the previous day’s prices i.e., high, low, opening and
closing prices are useful in indicating these pivot points.
Another indicator is Fibonacci retracements or Fibonacci
levels. These rations are used to highlight trading opportunities as well as
entry and exit point targets. The primary ones are 0.24, 0.38, 0.62 and 0.76
which are usually expressed in percentage.
These technical indicators usually dictate market movement
i.e., high or low which will help traders in buying or selling of the assets.
It is true that the best way to learn trading is by these analysis but one should always remember than
no indicator is perfect, hence a trader must make smart moves while trading.
