Tools and Techniques Used By Traders

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Tools Techniques Used By Traders
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Index

1. Know the Language
2. Technical Analysis
3. Fundamental Analysis
4. Practice makes perfect
5. Know the Risks

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Know the Language

• In Currency Trading, traders use technical
  language that can be intimidating when you are
  just starting out.
• When you don't understand the word, you should
  refer to the commonly used Money Transfer Terms.
• As you familiarize yourself with the language,
  you will find that your understanding of Forex
  concepts as a whole will improve.

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Technical Analysis

• To develop a strategy, traders use different
  types of tools and techniques.
• Some traders perform the Technical Analysis by
  using Currency Charts to study the market.
• This technique implies that past market movements
  help to predict future activity.
• The effectiveness of Technical Analysis makes it
  a very popular trading technique.

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Fundamental Analysis

• Other traders use the Fundamental Analysis for
  their trading strategies.
• They follow the effect of social, economic and
  political events on currency prices.
• Reading specialized Forex News can help you to
  keep in touch with the Forex community to find
  out how events affect currency prices.

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Practice Makes Perfect

• Every trader makes mistakes, so it is a good idea
  to familiarize yourself with a trading
  environment before you invest money.
• To improve your trading skills, try to open a
  free demo trading account with a Forex company.

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Know the Risks

• Trading foreign exchange on margin carries the
  high level of risk, and may not be fit for
  everyone.
• Before deciding to trade foreign exchange, you
  have carefully considered the investment
  objectives, level of experience, and risk
  appetite.

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• Remember, you could maintain a loss of some or
  all of the initial investment, which means that
  you do not invest money that you cannot afford to
  lose.
• If you have any doubts, it is advisable to seek
  advice from an independent financial advisor.

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Thank You