In Forex trading there are two basic paths investors can choose: Fundamental or Technical. Technical traders look for trends in the market to help identify currency pairs and the best enter and exit points on a position. Fundamental investors look at changing interest rates, GDP figures, and other economic indicators to help them anticipate fluctuations in the exchange rates of currency pairs.
A fundamental investor relies on news releases and their overall impression of the economic outlook of nations in a currency pair. However, technical traders use charts and the application of analysis to help guide investment decisions. Many fundamental investors tend to be short-term investors while technical traders are seen more as long term investors trying to look at the bigger picture and focusing on the long-term pricing outlook. You may choose to incorporate a bit of both strategies when creating the system that works best for you.
When it comes to technical investors you may be wondering how they put together their charts. Most technical retail traders on the Forex market do not have the time to compile charts from scratch. Many retail investors do import information into programs like Excel in order to interpret the information but they still tend to rely on an outside source for the raw data and look to forex chart providers for information.
How do you know who is the top Forex chart provider is? The answer to this question usually depends upon the individual investor. You will want to look for a provider that produces charts that are easy-to-read and relevant to the particular strategy you employ. There are chart providers that are going to insist upon offering up a ton of “insider secrets” to the market in addition to their charts.
One common problem new investors have is a tendency to over trade and ignore the stops they put into place when acquiring a position. Fear is a common human emotion and it guides more investments than people think and can cause people to exit positions prematurely and over trade. Keep in mind the opinions of investment experts may sound perfectly logical and a lot more involved than your own strategy but they are just opinions. No expert can claim to always be right.
What you need most of all from an FX chart provider is accurate and easy-to-read charts. The advice they provide to go with these charts may also be helpful when learning the market and prior to acquiring a position. But the accuracy of the charts is more important than the advice that goes with it. It is the charts that technical traders come to rely on to track movements and gain a greater understanding of what is taking place in the market.