Trading in the Forex market different from other markets trading in kind. If you are trading in the stock market, you can make buy or sell on a particular stock at a time. Let's say you estimate the A shares will rise in price in the near future, so you decide to buy the A shares. At the same time you see the B shares will fall in price in the near future, then you are selling B shares you have, or if you do not have it you may be able to borrow the stock from a Brokerage firm (broker) for shares you sell, and you buy back later at a lower price than your selling price.
In this case you simply do an analysis on the types of shares, A shares or B shares if stock A good prospects (or strength is high) then buy stock A, otherwise if stock A prospects will fall (weakness is high), then A. Scenario trading stock sell you on the A shares only buy (buy) or sell (sell).
But if you are trading in the forex market, the case will be different. Assets that are traded in the forex market are currency pairs, or currency exchange rates with each partner. So there are two sides of the assets that you will be traded, or that you will buy or sell. Each side of each of these assets have the power (strength) and weakness (weakness). Take, for example the most popular pair EUR / USD, or Euro against the US dollar. The euro currency has strength and weakness, as well as the US currency.
Therefore the way the analysis will not be as simple as you like when you want to buy or sell shares of A or B. In fact, if you're honest you should know the strength and weakness of each currency, the Euro and US dollars. Can not simply say '' Euro really seemed to be weakening, I want to sell. "'If you sell the Euro, but not really weakened to the spouse then you will incur a loss, even if your analysis of the weakening Euro true.
For example, after you do an Analysis chart in the image above, you decide to sell EUR / USD. With a trading position that you've done means you sell EUR and buy US dollars. In order for you to profit, the couple had to move to a lower price. Perhaps at first the pair EUR / USD moves down, until there are important fundamental data releases from the United States which makes USD weakened. Because the data is so important that a weakening USD weight greater than the weight of the weakening EUR. When the EUR may indeed was weaker against the JPY, GBP and AUD, but not weaker against the USD. If so, you will experience a loss of data is Fundamentally important because it usually affects a little long in the currency.
