Home The three major schools of forex trading

The three major schools of forex trading

Nowadays, the various forex rebate club methods forexrebateclub the market can be summarized as three major schools: quantitative analys cashbackforexbroker, fundamental analysis cashbackforexexness cashback forex analysis (the ranking of these three schools is not in any order) The debate on the merits of these three schools has been going on for nearly a hundred years, with each party holding the same word, and a hundred years of debate down without a result to learn quantitative analysis has been ridiculing fundamental analysis and technical analysis. Technical analysis is too subjective, and the professor teaching quantitative analysis at Oakland University openly declared fundamental analysis and technical analysis as garbage in the classroom, while some elites in the financial markets claim: financial investment is an art, not a science Peter Lynch believes that all the mathematical knowledge you need in the financial markets is what you learned in the fourth grade. In fact, everything in this world has its value and reason for existence. The three schools of thought have been fighting each other for nearly a century, and each has its own value that cannot be ignored. More precisely, the purpose of quantitative analysis is to analyze how much risk to get how much return is reasonable, through the mathematical model to make the risk and return proportional to this can be seen, the goal of quantitative analysis is to preserve capital and preserve value, rather than how much income to obtain Therefore, quantitative analysis is widely used by many multinational groups and international funds we should pay attention to here For example, if a New Zealand international trading company sells a product to an American company, after three months, $100,000 will be on the account of the New Zealand company. In order to avoid this risk, this New Zealand company will buy and sell options, futures and other financial instruments to scale down the exchange rate, so that no matter how the exchange rate fluctuates in the next three months can be exchanged for 150,000 New Zealand dollars. Fundamental analysis is a way to estimate the current value of a financial commodity, whether the current price of the commodity is reasonable or not, and to predict the future price direction. However, this analysis method is not suitable for retail investors on the one hand because the collection and analysis of various data is too much work, on the other hand, there is no way for retail investors to guarantee the correctness and authenticity of the information he collects not only that, but also fundamental analysis is a macro analysis, the results of the analysis is n years later how to how for example For example, if you find out through fundamental analysis that the New Zealand dollar has been over-sold, according to the theory, you should be able to sell short, but lets not forget that fundamental analysis does not tell you how far the New Zealand dollar will be over-sold and when it will fall, not to mention that after being over-sold, it can be over-sold again, the exchange rate can rise again after it has risen and will remain for quite some time. wait for such a long period of time? Third, the technical analysis of the author himself is the study of technical analysis, from the authors point of view, technical analysis is simply tailored for speculation in this industry technical analysis in the end is to help you judge (please note that ah, is to judge rather than predict) out of the current market is in a what trend, and then let everyone operate with the trend Therefore, the author can put technical analysis finally summed up as eight words: buy up From a certain point of view, technical analysis exists for only one purpose, to help retail investors in the unfair game to make money To draw an analogy, technical analysis is like an assassins way of killing, there are no tricks, everything done is only one purpose - to kill a novel in which a killer said a sentence: my martial arts skills are absolutely inferior to his, but I have 70% certainty can kill him learn technical analysis May not be like the other two schools to the markets causes and consequences, the ins and outs of the story, but to say that the analysis, trading, money than the other two schools only stronger than weak

Link to this article:https://www.forexintellectrobot.com/6529.html

Copyright © 2012-2021 https://www.360tradebay.com - forex rebate club
Back to top