Alright so you've decided you want to trade Forex and you want to learn the basics; regardless whether you're trading solo or with an autopilot trading system; this is always a good thing. Knowledge is power right? No it won't power your lamp... put that down and get in the corner.
Okay so the first type is pretty basic, well they're both relatively basic but this one is much easier to understand; it's called "fundamental analysis". Fundamental analysis is essentially looking at the market through economic, social and political forces that affect supply and demand. Cutting through all the babble it basically means you're figuring out what country's economy is doing good and which country's economy blows. The concept is when a country is doing well; their currency will be doing well too.
The second type of trading analysis is known as "technical analysis" (maybe you've heard of it?). This is the study of movement; people look at charts that list the historical price movement and based on the price action try to determine whether the price will go up or down. The goal is to look at charts and find trends and patterns to help you capitalize on good trading opportunities. Simply put, the most important thing you will learn with technical analysis is the trend; maybe you've heard the saying "the trend is your friend". You're much more likely to profit when you can identify a trend and trade in same direction.
So which do you use and which is better? For some reason people feel like they need to limit themselves and pick one; I don't get it. When someone tells you to use just one ignore them! Both fundamental and technical analysis have their advantages so why not use both? That's just good logic as they both affect the market.
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