FOREX ARTICLES

There are two main, but at the same time confronting schools in forex analysis. They are the fundamentalists and technicians.

There is no clear answer as to which is right. Sometimes it appears that the technicians make better picks. Other times it seems the fundamentalists are making the right call. One thing is certain, when one group of analysts is wrong the other will surely emerge saying, "We told you so." So, which is right for you? There are many potential answers to that question. Three variants of popular answers are:

If you are a "long-term" Forex investor looking for companies with solid foundation, growth and income potential, the fundamentals may sway you.

If you are a "short-term" Forex investor (Forex market trader) looking for companies who are "on the verge" of being discovered, fundamentals will be useful to you.

If you are a "long-term" investor who is not as concerned about one company's basics because you will diversify to minimize risk, or you are a "short-term" investor waiting for investor sentiment to change, then technical analysis will be helpful to you.

Today, many investors use both fundamental analysis and technical analysis. The technicians can tell you about the broad market and its trends. The fundamentalists tell you whether an issue has the "basics" necessary to meet your investment objectives.

Fundamental and Technical analysis differ radically in their approaches. There isn't clear answer, which method has yielded better returns over a suitable period of study. Try using the best ideas from each camp and you should be pleased with the results.