Adding fundamental analysis to make trading decisions is making me loose money, i don’t know what to do. Should i shelve news events entirely and focus on my charts?? cause these economic commentaries and news releases contradicts with what is printing in my charts(price action)
Someone pls help!!
I would contend that trading the news is not the same as trading on fundamental analysis. If you’re trading the news all you’re doing is trading the market’s reaction to a number (or headline), which isn’t necessarily the same as trading the the long-term implications because said item is probably already priced in to a degree (which is why the commentaries don’t match the reaction).
Questions:
What kind of fundamental analysis are u doing?
What are your sources?
How are you integrating this in your trading approach?
What style and time scale are you using?
Regards
P.D: never mind, I was going to help you but you just insulted me in another post. Good luck with your trading.
So should i forget about news events and focus on what is printing in my charts?? since most news events is priced in before the actual release
Sorry if you feel insulted in any of my posts, i will never insult anyone intentionally, maybe it’s just the way i put my words together(English language is not my mother tongue)
Clarified Kingtony. We both speak english as foreign language so this things can happen :).
For what I have leared (im no pro). Fundamental factors drive Forex in the long term, with those being primarily:
The big boys analize and price in this factors in advance creating the well know “sentiment”. The news releases wil trigger reactions depending on what was each funds real forecast, and it looks difficult to predict where price is going to be.
I personally use bank reports from different sources to try calibrate what is the general sentiment that on a currency and detect if there is a shift in perspective that is going to override the trend/technicals Im working with (I trade Daily and H4).
This two pages have daily bank reports:
Easy Forex News - Forex News, FX News, Forex Rates, Trade Ideas, Forex Signals, Forex Charts, Forex Strategies
scotiafx.com
Regarding fundamentals I found that the materials from Chris Lori (chrislori.com) are pretty good
Hope it helps.
I agree with one of the other posts: Trading the news is not the same as fundamental analysis. My advice: forget about fundamental analysis altogether; it generates too many psychological challenges for the trader.
Sure thing, i think so too…from now henceforth i will focus on what’s printing in my charts(price)
I would see the news more as a confirmation that fundamentals have changed or an announcement that something will change. Trading the news event yourself can quickly blow up your account when you are on the wrong side of the dime, or badly caught by a huge spike.
As you will be probably almost the last to hear the news (almost, as I always hear thing too late), you should not trade it.
I think that if you analyze the news spikes of the last months, you will see that the market often goes opposite of what you expect from the news.
I’m trader who study more on news effect. So far, i got very positive result when trade on news than technical. When the news come and said up, market will go up steadily.
Its more logic to me, when news said up and market will up too. But i use technical analysis too.
My advice are, dont trade news except the result already there for us 
As mentioned, news is not all of fundamental analysis.
Forget about commentaries. Focus on the news or fundamental analysis. Get learned so you get less confused in the process of interpreting these.
You can also try shelving all these for a few weeks or months and see what happens.
Fundamental Analysis (FA) is often done to get a overall picture of the market. Thus, traders employing FA more often than not will trade on higher time frames ie H4, Daily or Weekly. They may buy and hold for long periods of time.
However, new traders often mistaken trading news events as FA. Trading major news event is a viable way to trade the currency market but you are really just trading the market reaction to the news. Take note that sometimes the market might already price in the news before it is released.
Many new traders and experienced traders use Technical Analysis (TA) because it is simpler to understand and execute. TA encompasses looking at chart patterns, support resistance, candlestick patterns and price action etc. There is a wealth of information online regarding TA. Just be careful not to get analysis paralysis and end up confusing yourself. Just choose TA that you understand and you can resonate with. Then just go on and trade the market on demo account first. When you are consistently profitable, then you go live again.
Just Trust and use kind of Analysis that you can Understand and suitable for you… if you feel Fundamental Analysis Harder for you then it means it does not Fit for you, so you better Learn more about Technical Analysis…