I do not follow fundamentals as a short term strategy, but as a longer term outlook for a trade you can sometimes glean insights into government and business views. Example: is the debt problem in Europe…Europeans viewed the data one way, around the world the US and Asia took an entirely different view. Those differing views can have diametrically opposing consequences… Do not assume that the Euro/USD will react the same way as the EUR/GBP because of European debt. Too a very large degree the USD/ Asia currencies have a much greater interwoven dependency that the USD/EUR situation. You can clearly see that in how Europe has distanced itself from the US political and military conquests around the globe. That also is starting to reflect in the Forex markets in Europe.
I can see where you are coming from, but it is very tough to predict exactly the point at which markets will react to fundamentals. I know that many traders make it work for them, but I think it would be tough as there are so many subtleties. I am interested in international politics, used to work in a related area, but in terms of my trading I won’t enter a trade because of fundamentals. I might, however, exit a trade or tighten a Stop following fundamentals. Or stay out of a trade altogether!
Well, if you’re trading the news reports, it’s possible I think.
I agree wholeheartedly with many of the Senior and Junior members here. With regard to ICT…patience is key…sometimes the market just does not come into focus clearly…be patient. Sometimes it is better to walk away and live too play another day.
Secondly…what really is your goal…do not say money. that is a given. Your trading Forex to make money…OK, but before you begin your day…have you written out your daily tag sheets…on those sheets, I write down what I am trying to do…I post it near my computer and when or if I obtain those results, then I am done for the day.
A tag sheet is a single piece of paper, with the Forex position, date, time, dollar amount committed, price entered/closed, projections, Profit/Loss, indicator used, comments about daily activity.
Over time you will start to see things in those tag sheets that tell you about your trading…entered trade too early, too late, misread indicator. It is rather simple technique, but over time it really works.
Another issue is stay with one indicator, I usually use slow stochastics…hourly…20/3/3 basis. I try too stay away from the very short term indicators such as 1, 5, 10, minute because they can swing too much.
I think fundamentals should be used along with a technical analysis. With the help of the latter we can specify the entry/exit points.
Fundamental analysis can give us at least a hint of where the market can go and we can decide whether we should buy or sell.
Pain, you should not be dissapointed with forex, I am sure one day everything will be fine
well, if u can master both, that’d be amazing.