Please the honourable house, How may I be profitable using the fundamental analysis? I need help to be able to identify, read, interpret and apply it profitably to forex trading
Fundamental analysis alone is more for âlonger termâ aspects of trading and fundamental information doesnât necessarily affect the market immediately.
Sometimes fundamental news has the reverse affect on markets so one should be wary when trying to apply fundamental analysis alone.
For example: A news report that gets released that is âgoodâ for a particular asset, normally results in a sell off - so be wary
The idea is to âcombine analysisâ
- Technical
- Fundamental
- Sentiment
Find a good trade setup - then âStick to the planâ
The thing about fundamental knowledge and information is that it can change in an instant, and retailers will be the last to know about these changes, mainly way after the fundamental impact has been âpriced inâ to the market from inside traders.
Hope this answer helps
Oh! yes. Thanks. I know of technical/chart analysis but, I am thinking of how to combine the two together; brought about the inquiry.
Great, so if you have a good understanding of the technical side then its far easier.
Applying the fundamental side will make more sense when understanding the economic calendar and looking for hot releases - for example: US GDP
When you have found a hot release and look at your technical graph you will usually see how the 2 combine together and gives a general sense of direction to look for. Still remember to apply your risk margins and not go âall inâ on trades!
Being patient and waiting for the âcorrect timeâ to place your trade is imperative.
The big banks make price move. They have so much capital involved in forex that they cannot conceal when they are e.g. buying CHF or selling CHF.
The big banks have cleverer people working on more powerful computers with faster news flow and more information than we can even dream of. Why not let them do the FA for you, and just buy what theyâre buying, sell what theyâre selling?
That is a great comment. âThe trend is your friendâ, as they teach you in paid courses. LOL.
Great post! completely agree
Using a fundamental analysis is an advantage it helps in looking at the forex market by analyzing economic, social, and political forces that may affect currency prices.