They are two types of trading

1. Fundamental analysis
2. Technical analysis

Fundamental analysis:Is a way of looking at the market through economic, social and political forces that affect supply and demand.
e.g.
If financial report or any news is positive to the currency of a given country this going to rise the price of the currency
e.g.
Non Farm Payrol (U.S.A):If its positive this means that USD currency will move higher (gain more strength)

• If USD is base e.g USD/CAD its going to BUY/LONG
• If USD is a quote in a pair e.g GBP/USD its going to SELL/SHORT

e.g.
Non Farm Payrol (U.S.A) : If its Negative this means that USD currency price will fall (loose strenght)

• If USD is base e.g USD/CAD its going to SELL/SHORT
• If USD is a quote in a pair e.g GBP/USD its going to BUY/LONG

Technical Analysis:Is the study of price movement in a given charts.