Being a long term investor myself, I have often heard different kinds of analytics used to gauge the value of currencies or assets. The most common in trading terms is called the “currency pair”pear”, while the “asset” is the mutual promise of two countries to exchange one for the other.
The metrics and statistics used to analyze the value of currencies or assets can be classified into two broad types – the technical or mathematical and the qualitative or psychological. In technical analysis, the currency pair or asset is chosen by using a set of mathematical equations or computer algorithms. The use of any kind of numbers here is purely based on making predictions.
The “idea” (the end goal) has been established beforehand; the goal is not reached but some action to get there will still be possible. You don’t need to know how this will happen; all you need to do is know how to reach it. Technical analysis is a method of forecasting through identifying where certain trends are likely to evolve.
Of course, when this happens, it could be a very good thing and when it doesn’t, it could be an extremely bad thing. There are also times that the trend is at the opposite end and the predictions come true. In short, when there is no need to make any predictions at all.
Understanding what analytics is, and its purpose in life, takes time to master and a lot of effort to master as well. The whole idea behind such analytics is to understand trends in the market. So, it is really only a matter of time and effort to understand the dynamics of the markets and how to spot the trends and indicators of these dynamics. Of course, even with this effort and time, you would still have to study the business and fundamental analysis before you can use this knowledge in your own trading.
It may be more difficult for you to get into fundamental analysis than technical analysis. Fundamental analysis is more about analyzing data and statistics and usually involves a study of price actions, supply and demand, etc. With technical analysis, you have to go back to basics of understanding how the markets work.
When you understand the fundamentals, you may want to consider getting into a system that provides these fundamentals. Of course, you could always take a chance with some random guesswork but then again, the latter is going to be worthless since you might be completely wrong. A system is not going to make you a fortune in the market.
Of course, you can choose to work on fundamental analysis without a system as well; I wouldn’t suggest doing this though because it can be quite boring and very tough to work on. Of course, you could go about in a very deep manner but this will take forever and you really wouldn’t want to do that.
Of course, it would be even better if you took some kind of course which would be able to teach you the ins and outs of fundamental analysis. Of course, this is more expensive and more difficult to get but it would be worth it. This is so simple but if you take a few minutes to think about it, it can make a big difference to you.
In a nutshell, you could say that you should go to a program that would train you in the basics of fundamentals and, later, technical analysis. If you decide to get a course like this, take a look at the credentials. Don’t trust someone who is selling his or her training on the Internet; ask for some references or talk to a friend who is already an investor or trader who had taken the course and is now a pro.
As for the analytics, don’t expect to learn all the techniques and analytical skills within one year. Analysts are trained and develop their analytical skills in their early years of trading. As they move on to the later stages of trading, they start focusing on the analysis and forecasting skills that allow them to make decisions and forecast market movements and changes with great accuracy.
Chris Hanson, the author of Tradin’ It and the founder of Chris Hanson Financial Training, has established many programs that can provide you with the necessary tools and training to become an expert trader. Take a look at his website for more information.