A fundamental analysis uses economic and political factors, such as unemployment rates, interest rates, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons or causes for currency movements.

A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones.

Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. However, the important point to remember here is that no one strategy or combination of strategies is 100% certain.

As with stocks and mutual funds, there is risk in Forex trading. The risk results from fluctuations in the currency exchange market. Investments with a low level of risk (for example, long-term government bonds) often have a low return. Investments with a higher level of risk (for example, Forex trading) can have a higher return.

To achieve your short-term and long-term financial goals, you need to balance security and risk to the comfort level that works best for you.

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Every Monday morning I sent them a warning valid for the whole week, each line being calculated and weighted according to an algorithm that my colleague and I have developed over several years.

The philosophy of this strategy sets out the basic approach of my trading. I’ll take three examples: three trades we’ve made recently: a loss, trailing stop gain and total gain. Simplicity, managing risk and your exposure are three crucial concepts of Forex Trading.

◊ simplicity, risk management and market exposure
Simplicity: I apply generally a simple breakout strategy.
Risk Management: I put a stop tightly coupled to a ratio of profits / losses low but positive. We seek in this case the relevance ratio with a good number of gain / loss number.
Managing Exposure: providing a target near, I try to spend as little time as possible in position on the market, which is to manage exposure.

This strategy has reported a performance of 83.5% over the last 24 months by taking 2% risk per position. That is to say that a portfolio of 10 000 you invest only 200 euros per line, but of your overall portfolio has increased from 83.5% in two years. You have 18 350 euros in my pocket! Not bad compared to the evolution of the CAC40 …

Look at the curve results. It reflects a healthy trend, in steps, specific to a development that reflects a drawdown and changes in market conditions.

As for good sites for tips, news, analysis:I use bloomberg for my economic news. Keep in mind – I trade a longer term strategy that is not significantly affected by intraday news releases so Bloomberg works for me. If you plan to scalp you will need a source to give up to the second news as well as an “economic calendar”. I recommend forexfactory but there are plenty of others. Just google Foreign exchange  economic calendar.

As for analysis, I like fxstreet. It is free and has decent content. However, what you will quickly learn is to not give into the hype. You will find that one analyst will say one thing and another will entirely contradict the first. Read with an open mind and then use your own knowledge to choose how you react.

And for where to find good tips…that is a hard one. Most tips are trading system specific and may not be right for you. However, probably the best way to get trading tips is by joining a free Foreign exchange traders forum. I like forexfactory, fxfisherman, or babypip’s forum. Just google any of those three.