My name is Abdulganiu my question is
I want to trade USDJPY and In a news it says Japanese yen strengthened 1.1% to 24.1094 per dollar.
-EURUSD and in the news it says euro advanced to o.1% to $1.0855.
-GBPUSD,in a news it says GBP gained 0.3% to $1.2295 per dollar.
-Gold strengthened 0.1% to 1.703069 an ounce.
How should I trade the currency pairs should I buy or sell.
Please I need an answer to this question
That news is in the past. So all the moves have already happened. So what are you hoping to happen?
Also this is not fundamental analysis. Fundamental analysis is watching and understanding economic data and statements from the central banks. Then analysing how that affects the currency.
Alright but in case I see something like that what do you suggest I should do and please can you teach me about fundamental analysis
Fundamental analysis does not work. Best to completely ignore it.
yes maybe as retail traders we are lambs to slaughter trying to analyse outcomes of the news ect, though it obviously effects our trading
Fundamental analysis works and techincal analysis works.
The problem with fundamental analysis when trading forex is that there are an endless number of fundamental factors that affect price. And on top of that you have to project the impact on price that these fundamental factors will have.
Im sure there are those among us who have the capacity for this but i’m not one of them.
On the other hand as a technical trader i believe that the end result of all fundamental factors is price, therefore if I focus on price i dont have to deal with fundamental projections, im able to deal with the techinical facts instead.
Dealing with and reacting to current price instead of predicting price is one of my core beliefs and has served me well thus far.
Alright thanks a lot I really appreciate
Thanks to everyone also
Sometimes in order to see the future, you need to look into the past, so there is nothing wrong with studying the past events in the market, because this is what allows you to fix the strongest levels in the market, and therefore conduct a deeper analysis of the market.
The best system is combination of knowing technically where to enter the market and fundamentally what reason is behind the overall market direction. For example in the current climate if world wide the Covid19 crisis gets worse most likely the USD will rally as a safe haven trade. Otherwise if most of the world is improving with Covid19 and only USA getting worse then USD could weaken. Other times we look at economic data about jobs, CPI, manufacturing. If these areas of an economy are going well that currency should get stronger. Then you want to look for best currency pair at the best price to trade.
The fundermental analysis are very important especially at this time that the world market is experiencing a big challenge. We need to lay down some serious amendments in order to ensure that all are made well. For example, the corona virus has greatly affected the global economy. We should look for people who will help us make ways on how we can recover what we have lost.
It is said that the world economy is going to be restored back to normal, but it will take more time in order to come back to normal. This is due to the lock down that has been there since the emergence of the corona virus pandemic. It is so sad that the world economy has reduced beyond recoverage, even though the leaders are trying the much they can to bring things to normal, but it is still hard.
It works if you forecast for long-term horizons. Economic relationships take time (sometimes a lot of time) to work as you expect them to work. Various noise, including random events, investor irrationality, government support may also distort picture but if you are investor it shouldn’t bother you.
Funnymental only works as people interpret it - FEAR AND GREED !
Learn first then start forex Trading others wise you lose your money.