Hi guys, I’ve been in Forex for years but I still have no much idea on what the economic news say or talk about…
There are some articles about fundamental analyses out there but they are pretty useless to me because there aren’t that much of them plus they don’t clearly state the strategies on how to use them ( including babypips ) so although I try to learn them, its useless if I can’t apply them for real…
Anyone has suggestions ?
You kind of remind me of myself.
So, doesn’t it make sense to learn macroeconomics, international finance, even microeconomics. That’s what I’m doing presently, and for the long haul. I want to understand how the currencies flow in and out of the countries. Economic data has big effects for that. Also the central banks, which has the job of regulating their money flows, makes a big difference in the market. International trade likewise also contributes to seeing movement in the market.
So, all I am saying is that it makes sense to pick up a book or two on the subjects above. I’m doing it so that I can understand what the economists are saying. Also I think it will give you some kind of edge on knowing what is going on in the forex market, along with the technical aspect of it.
It’s not easy, to learn economics. I’m glad, because then everyone would be in on the secrets of the market.
I could be wrong, but that’s how I think.
Mike
As Mike suggested, you need to study and in my opinion more importantly understand the economy. Fundamental strategies will be based on your understanding of how the economy works. You claim you have been trading forex for years, but still do not understand what economic reports are talking about which suggest to me that you did something wrong. Don’t get me wrong, I trade based on technical analysis, but still am aware of fundamentals and understand what they say. How you have managed to remain a forex trader for years without understanding the full picture is beyond me.
Hi to the OP. One priority would be to ask: what kind of time can you invest in your trading? I think that if you are willing to consider trading as a part-time, after-hours, self-taught activity, you may want to concentrate on simpler paths, which to me would spell more technical analysis (not to say that it is easier); however, as others said here, understanding basic concepts of economy could help your trading awareness, even though there is no guarantee of that additional learning giving you the oft-quoted ‘edge’ - in the end, you could stuff your head to burst with micro and macroeconomic knowledge and still be a hopeless trader…it is all about how you (by which I mean all of us) use the information made available…
I think you should take it one step at the time otherwise you get overwhelmed. It is important to understand fundamentals even if you are a technical trader as fundamentals do move markets and knowing what a report says about the economy is very important in my opinion.
i think it also on how you invest if its long terms(months or at least weeks )and large amounts of money sure fundamental analysis is important. you need to know the situation of the countries whose coins you trade . the interest the unemployment import export goods manufacturing national debt (like the dollar that being printed non stop :)) . its not hard as big picture but for individual, its not easy to scalp and manage all this info to something useful really . all the news breakouts that people call fundamental is bull**** its not possible to trade news because of the simple reason it been already traded by the time you as private trader get the news . and more its a speculation market . people sit in reach companies have the info you will never get as private trader and trade base on it . if you fast and risky enough you just can join they party nothing more. i think better stay away . the best you can do is look at the types of news released. and look back to see what was he effect of those news in past . it not guarantee nothing but it can give yous some clue about the future releases. that’s my opinion on fundamental news .