hi everyone, how to view news for swing traders? I see the economic calendar it has no obvious impact ? thank you.
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This is the challenge of focusing on fundamental analysis including news - in forex, on many days there is no new news visible that would change prices. Yet prices continue to change. This can only mean one of three things - either -
- there is news which we cannot see and will never discover - unlikely, and not tradable anyway
- prices continue to move in the direction that was set by old news - a trend - this gives you the right direction
- prices move against the trend but the trend continues - volatility - this gives you the opportunity to enter at a good price.
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Can’t completely rely on this BUT still good to know in case it does anything. I find only major central bank news moves it. And sometimes it still doesn’t.
Have you researched using the COT report? This can be very advantageous for swing traders measuring average changes in long an open positions
Fundamental analysis is really hard to implement on trading currencies. I would concentrate only on some major news like OPEC decisions or non-farm payrolls or something like that. For all the other cases technical analysis is enough for successful trading, from my perspective.
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Swing traders usually hold on to their positions for a few days to a few weeks. They use technical analysis to determine when it’s time to buy or sell.
swing traders do not usually pay much attention to the news. When I saw the news that the market was crashing, I held on because I knew it would rebound.
That is all about fundamental analysis which requires lots of study about the economics.
Not all of the news have some impact on the market, some of them might affect the market after certain period of time and the most important ones affect it immediately. Fundamental analysis is a very difficult thing to implement especially for those who are far from financial markets and economics. That is why you should think whether you are ready to spend lots of time on learning it or not, but I don’t recommend you to trade according to the news if you don’t know how to do it. It is better to wait until the immediate affect passes by and the market calms down and then trade according to the technical analysis.
Fundamental analysis can be of great help to swing traders but it is not enough to just follow the economic calendar.
As for me, I do really use fundamental analysis on the daily basis because it looks too difficult for me. Surely, we cannot say that reading the current news is enough to see the overall fundamental picture of what is going on. Fundamental analysis requires huge knowledge about the markets and economics. As you have mentioned, many economic news don’t have direct and immediate impact on the prices, while some sort of news affect the market right away and in a dramatic way. That is the complexity of the fundamental analysis: you’ve got to know whether this or that kind of news will affect the prices on the assets. I believe that expertise in fundamental analysis can reached by lots of practice and knowledge on the economics. For example, to my great embarrassment, I don’t really understand the concept of the key interest rate and the manipulations which are made in order to increase it or decrease. However, this is the key concept for the economists to come to the conclusion of whether the currency price will rise or fall.
In clonclusion, I should say thta fundamental analysis will give a trader lots of advantages but it is very hard to master and it is not obligatory. I mean that a swing trader can easily do without analysing the news in most of the cases and still be quite prolific.