If you are new to forex first time generally you will feel enthusiastic about the market movement. What happens next is that you are carried away by emotions and feelings when positioning. And most traders that I know even have a tendency to think of forex trading as gambling.
Why is that so? Because every time I ask the reason why they put up a position, the answer is like the following statements: “Because it has gone up a lot, EUR / USD is definitely going down today”, “Feeling I’m going to USD / JPY going up now”, “I put it because my friend said EUR / JPY going down”, “There is news on TV he said the economy is not good anymore, so I sell”, and so forth. Answers like these will generally be raised by gamblers who consider themselves a forex trader. For those of you who are still like this, I suggest you to stop trading temporarily and start reading. Because you have not even entered the lowest level of the level of success of a trader.
To be successful in forex, you need to master how to analyze the market in Forex. In forex analysis itself is divided into 2 types of analysis, namely Technical Analysis and Fundamental Analysis.
To make it easier for you to understand both, I can describe both of them in the following explanation:
Technical Analysis is any kind of analysis done by looking at the chart (price movement). By learning Technical analysis means you will start to recognize terms such as support & resistance, Moving Average, MACD, RSI, Bollinger, etc.
Fundamental analysis is any kind of analysis done by analyzing factors outside the price movement, such as news, economic data, bank interest rates, and others.
Actually in some articles mentioned there are 2 other types of analysis that is Sentiment Analysis (an analysis that takes into account the thoughts, beliefs and opinions of traders on the market) and Intermarket Analysis (an analysis that measures the level of strength and relationship among many financial products in the market). But these two analyzes I think can still be categorized as fundamental analysis. So I still think there are only 2 major streams for analysis techniques in Forex namely Technical Analysis and Fundamental Analysis.
I myself actually include a trader who trades 80 +% based on technical analysis. For fundamental analysis, I usually just avoid trading in the hours where there will be important announcements that would have a major effect on price movements.