Dear traders, I wanted to open this topic because it is controversial and I would like to give my point of view about it.
I’ve been operating for several years and for me fundamental analysis is a factor that should not interfere or influence in your trades.
For me, forex is a long-term investment, if you want to succeed in the forex market you should thoroughly study and learn how to analyze graphs. A fundamental analysis only affects short-term operations and for traders who like “scalping”, but we all know that trading in times of major news it is very risky and it is like betting all or nothing and this is not the correct way to trade, in my opinion. I also wanted to comment for all those who are starting to trade with any broker and have an account manager, they usually try to convince you to invest more money and operate at times of important news into thinking it’s a great opportunity to trade, which is not quite true and is, as I mentioned, very risky. Better long-term trading with a good technical analysis.
Good luck!
You seem to be confusing fundamentals with news. Fundamental analysis looks at the big picture macro drivers of currency valuations. It is not very suitable for short-term trading. News is just an input into fundamentals.
Hi rhodytrader, I agree with you, I am not confusing fundamentals with news, but I am just trying to make a point for new traders that are trying to be convinced by their account managers that trading and investing on a big news is a great opportunity, well is not. As I said, Forex should be a long term trading if you want to succeed, and for that you should not trade or be influenced on big news.
Your title is very misleading
if you dont trust fundamentals your going to be a losing trader
That is a way of putting things… but I till now I am not a losing trader and my strategy has work till now pretty good.
Some fundamentals are just big buzz on a daily trading and as I said I am long term trader.