A major concern of a new Forex trader is: “How can to make a profitable decision regarding buying or selling a currency pair? Or when is the right time to buy or sell a certain currency pair? What are some profitable forex trading tips for different currency pairs?”You can decide by a fundamental trading analysis.
Fundamental Trading Analysis:
Fundamental trading analysis views and observes the economy of the country whose currency attracts the attention of the trader. The analysis revolves around the major elements of the economy such as exports, imports, productivity, interest rate etc. This analysis helps to grasp an idea of the future stability of the currency of that country as every currency reflects and demonstrates the economic condition of its country. This analysis gives you some beneficial forex trading tips.
Example:
You are trading this currency pair:
EUR/USD
Here EUR is the base currency as it is the basis of a trade.
SELL EUR/USD:
If you believe that the economy of U.S.A is progressing and the value of its currency is going to rise against euro, then you will opt to sell euros and decide in the favour of placing a SELL EUR/USD order.
BUY EUR/USD:
If you believe that the value of dollars is going to decrease as it economy is not stable or it is facing some crisis then you will decide to execute BUY EUR/USD order and buy euros to get rid of any avoidable loss.
Lots:
In Forex, trade is mostly done in “Lots” as you don’t do trade of just 1 or 2 euros or any other currency. Trading in lots is one of the effective forex trading tips. Usually traders prefer lots of 1000 units, 10000 units or 100000 units. 1000 units is a micro lot.10000 units is a mini lot. A standard lot is 100000 units. However it may differ from trader to trader as it depends upon your trading account and your broker.
