Based on the theory of magnetic dipole, this paper analyzes the forces and moments applied on the particles and established the corresponding equations of motion. It compares these forces respectively in order to reduce the computation time in the numerical simulation. It is found that magnetic force, viscous force and repelling force are stronger than other forces, and translation is the main motion. Therefore the governing equation in the numerical simulation can be simplified. The validity of above dynamic analysis is verified by numerical simulation on the microstructure of magnetorheological fluids.