04, November 2015: A trader that’s worth his salt should concentrate on looking for the true intrinsic value of stock or currency. When using basic foreign exchange analysis, the trader should consider various factors that can give insight into the true value of whatever it is that’s being traded. There must be quantitative, qualitative, financial, and economic reasons that factor in on the value of a given object. That’s forex in a nutshell. It’s about predicting the rise and fall of the value of a given currency then investing or selling that currency in accordance to these so-called peaks and valleys. For instance, if a given country’s unemployment rates are rising or if there’s congestion in their harbor, chances are the value of their currency will drop. It’s therefore important to stay abreast when it comes to current events.
Meanwhile, a sentiment forex trader should be sensitive or emphatic to the sentiments of his fellow traders http://www.forexchef.de or the current sentiment of the market as far as foreign exchange participants are concerned. He has a sentiment for a currency that might be shared by likeminded traders that have direct impact on the market. You can use this factor instead of reading up on current events and pretty much get the same result. Even if you’re not aware of the GDP or unemployment rate of a country, as long as you’re aware of whether or not your fellow traders would trade with a given currency, you’ll have a handle on the situation or what to do. There is no set method for doing things by sentiment, though.