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There are so many Forex trading strategies out there that it’s not surprising so many people don’t know where to start. But actually, all of those strategies are some combination of two different techniques: fundamental or technical analysis.

A fundamental analyst looks at a nation’s entire financial picture to guide her trades, studying international macroeconomics and the forces that drive the supply of and demand for a currency. There are five of these factors:

• is that country’s government in good financial shape or in the red, and what is their financial policy (pro-business, labor, etc.)

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It is important to remember the two essential approaches used for online forex trading. These are the technical analysis and the fundamental analysis.

The fundamental analysis approach does not rely on the forex charts. It does scrutinize the political as well as economic indicators so as to determine trades. The charts in this case are used as secondary references.

The technical analysis approach on the other hand tries to predict the price swings by analyzing the history of price activity. For those who use this approach, they do have to study the relationship between time and price.

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