As a trader, your goal is not to become an expert on a particular company or an economist. Instead, you need to understand the underlying trends that move the economy. Fundamental analysis helps in understanding how long trends may last, but the stock market is not synchronized with the economy — by their nature, the prices of stocks are forward looking and reflect the future as understood by the investors. It is not the current position. Often you will find when quarterly results are announced that the stock price does not go in the obvious direction, as the market had already anticipated the results and factored them into the current price. Say IBM had a bad quarter When it is announced, you may well find that the stock price does not go down: the cognoscenti and those on the inside track knew enough beforehand that the price had already declined, If appropriate. You may even find the price increasing, as a result of the results being confirmed and no worse than thought.

THE ECONOMY

Fundamental analysis can be viewed at three levels, from the top down. First, the economy must be understood. Each month a series of reports are issued by the government and other agencies which comment on various aspects of the economy. Some are weekly reports, and some are issued monthly.

The Bureau of Labor Statistics Issues a report on the first Friday of each month. The essential elements Include:

• Payrolls (non-farm), which provide a measure of the number of jobs created.
• Unemployment rate, which compares the number of unemployed people to the total labor force.
• Average hourly earnings, the wages earned.

From this report you get an idea of how healthy the labor market is. A healthy market indicates a growing economy and company profits. Unemployment rises during downturns and falls during economic growth.

This is only one of the factors that should be taken into account in forex trading. There are many more of them. Some factors are very difficult to analyze since their impact can be fairly different depending on other accompanying factors.

If you are a beginner it is impossible to analyze so much information. Thus, you can use forex magic machine that will do all the hard work for you. Forex magic machine will gather all those indexes and interest rates, compare it to past data and come up withy the decision.

Forex magic machine has one goal – earning money. In other words this is a professional trader who requires no sleep and rest. Forex magic machine is a trader that never gets angry and is never blinded by greediness or emotions.

This is a very good option for beginners who are making their first steps in forex.

Please before you launch your real forex trading – get quality education about the realities of the forex trading industry.

Or (alternatively) you can use managed forex trading service where other currency traders will take care of managing the trading process on the currency exchange market.

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