Fundamental analysis mainly focuses on the financial and economic theories, as well as political developments to determine supply and demand.
Technical analysis is focused on the level of prices, sales volume, and on the basis of these data are formed forecasts of market levels.
The main difference between technical and fundamental analysis is that the fundamental analysts are focusing on the reasons for movements in the market, while technical analysts focus on consequences of the market.
There are two basic advantages of Forex trading, which will help you to set up your deal.
The first one is liquidity. Have you ever bought a stock and could not sell it at some point? For example: You bought some concrete share. They rose strongly in value within only few months and suddenly the CEO resigned. At this time the trade stopped for a few hours, and the next day the stock price fell by 10%. Unfortunately, you find yourself in a situation where there is no possibility to sell these shares. Such can never happen at the Forex market.
Having euro, pounds, Swiss francs, dollars or other currency you can sell it at any time. You will never find yourself in a situation where you will not be able to sell the currency, and this is a huge advantage of currency transactions. For you as a trader, it does not matter what to buy, what is important is that you can always get money for your goods, there is always a buyer.
A second advantage of Forex trading - there is no control of external financial institutions. No matter how brilliant the speculator is, he can not affect the exchange rate.
Once every ten years the central banks intervene in commercial transactions, and they can affect the value of the currency as a whole to change it to 2%, such an action does not last more than a few hours and the exchange rate returns to its natural level.