FX Basics & Fundamentals & Technical Ranking [1] Revisit the basics of FX before learning fundamentals and technicals

In FX, market analysis is essential, but many beginners wonder, "Are fundamentals necessary?" and "Which technicals should I use?" This time, we had two professionals rank fundamentals and technicals! I think it will be helpful not only for beginners but also for people who are already trading in the market.

We have also summarized the basics for those considering FX debut. Read this to shortcut your path to becoming an expert!

【1】Revisit the basics of FX before learning fundamentals and technicals

【2】YEN蔵さん's Top 5 Important Economic Indicators

【3】Yamanaka Koji's Top 5 Important Technical Indicators

※This page corresponds to Article [1]. Articles [2] and [3] are on separate pages.

YEN蔵さん Profile

Representative Director of ADVANCE Co., Ltd. Over 20 years as a foreign exchange dealer at a foreign bank. He has deep knowledge not only of major currencies but also of dealing in emerging currencies, including Asian currencies. He also has strong connections with overseas traders and fund personnel.

Koji Yamanaka Profile

Director of Ascendant Co. In 1982 joined Bank of America, became Vice President in 1989, Proprietary Manager in 1993. Joined Nikko Securities in 1997, Deputy Head of Foreign Exchange Funds at Nikko City Trust Bank in 1999. Founded Ascendant Co. in 2002.

FX: A Quick Recap — Key Points of FX Summarized Simply!

Understand risk and practice prudent management

The advantage of FX is that you can trade with a small amount of capital. For example, with USD/JPY at 100 yen per dollar, entering with 10,000 units would require 1,000,000 yen in funds, but using leverage allows trading from around 40,000 yen.

FX is popular because you can start with a small amount and, depending on market conditions and strategies, there is potential to increase assets in a short period.

On the other hand, FX is often perceived as dangerous, but that is not necessarily true. If you acquire proper knowledge and trade within your capital and acceptable loss limits, you can operate safely.

The Appeal of FX

● You can start with a small amount and potentially increase it significantly in a short period

● It is basically tradeable 24 hours a day except on weekends and holidays, so it’s convenient

● You can enter not only by buying but also by selling

● By taking advantage of interest rate differentials, you can profit just by holding

FX Characteristics

1. By using leverage, the amount required for trading can be compressed to as little as 1/25 of the position size.

2. Trading fees vary by FX company, but most are effectively free.

3. The number of tradable instruments varies by company, but 10–100 currency pairs are commonly tradable.

4. Trading is possible on PC, and of course on smartphones and tablets.

5. You can make profits in either currency appreciation or depreciation, so you can grow assets regardless of the economic cycle.

Risk Examples

Capital loss

FX does not guarantee profits; your funds can decrease. Start with a demo or small-scale trading to get comfortable with FX.

Sudden currency fluctuations

Rapid moves can trigger a stop-out (forced liquidation). Monitor daily news and charts to analyze market movements.

FX company bankruptcy

In financial crises, some FX companies may fail. If it is a domestic FX company, there is a trust protection system for safety.

System troubles

There can be occasions where you cannot deposit or withdraw due to the FX company’s server downtime. Use a highly reliable FX company.