Mutual Funds and Forex Trading Analysis

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Mutual funds and trading always go hand in hand in the market. Start Mutual fund SIP, are very common and important to know about the details of insider trading and more. Start Mutual fund SIP can be also hunted online and can help you with the details of all about trading. After having our conversation regarding the similar topic and after a consultation many people said that Start Mutual Fund SIP, is also a new genre with the knowns of forex trading. Thus, today we will be discussing the analysis of forex trading with SIP.


Forex Trading, on the other hand, means the trading through which one currency is changed into another, where things are always referred to as pairs, that means selling one currency while simultaneously buying the other one whereas, Foreign Exchange market is an over the counter market where foreign currencies from all of the world are traded. It is thus considered as the largest and the most liquid market in the world.

Now, forex analysis is basically used by the retail forex day traders who decide to buy or sell decisions on currency pairs. This can be technical in nature as they use resources such as charting tools etc. It can also be basic in nature by using the economic indicators mainly based on news events.

Now, there are various analysis methods for forex trading which are used by traders which help them in buying or selling currency pairs.  Types of analysis methods for forex trading as given below:

  • Fundamental Analysis

By using this method you can look into the Gross Domestic Product of a country and can also know whether it is growing at a fast or slow pace as well as on the interest rates etc. The fundamental analysis involves inspecting the supply and demand of an asset from the political, economic, and social standpoints. It is based on supply and demand but is very important as it includes all the major political and social events which have a direct impact on the country’s currency. Thus, a currency performing well in the present will not always perform well in the future.

  • Technical Analysis

This analysis is based on the assumption of history repeating itself in foreseeable ways. In this analysis, we only look at the past movements of the past and by using this information we plan about current and future trading conditions. The forex traders with the help of charts find patterns and identify trading opportunities. The only disadvantage to this analysis is that at times two people can look at the same chart and can draw different conclusions about the directions of the price which often leads to an inaccurate collection of data.

  • Sentiment Analysis

This analysis involves making trading decisions that are based on “how actually the market feels”. It usually depends upon the trading question knowing if the market can be optimistic about it. One only needs to recognize the sentiment and then approve it into your trading decision.




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