Where are the fundamentals?


I’ve realized in these days the importance of fundamentals in trading, but i’ve seen too much information everywhere and i just don’t know what to see.

I surf around FxStreet, DailyFx, Bloomberg, etc. and i’ve seen so many reports, Economic Reports, Economic Calendars, Economic Indicatos, News, Market Data, Market View, Fundamental Reports, Etc. Do you see?

There are too many reports, each one with a lot of information and some of them repeat some things from the other, many things to see but in the end i see nothing… i start reading them, and ten minutes later i’m confused, at this time, after being a couple of weeks watching news and reports, i don’t have the minimal idea of where the EUR/USD is going to.

Where can i find the better information, something like a resume of the fundamentals, something i can see the mid and long term trend with? (not only the economic calendar of events), something like the most important market movers in short, medium and long term?

I know a little about technical analysis, but i want to be able to see the trend in the fundamentals, and then, use the technical to enter to the market…


I�m also in trade and keep referring useful sites like Babypips, Forexboost, forexplane and others. I found an useful publication Secret Forex Society. that gives real time news & current marketing trends. You can get real time forex trading news & events and also the basic fundamentals of forex trading.

Good luck

And what exactly would you do with this [I]‘real time news & marketing trends’ [/I]exactly, as a matter of interest?

If you’re intending trading off the back of live news releases or attempting to catch the coat tails of a major eco number, then you might as well put a match to your dollars - that is definitely the route to the poor house.

I really don’t understand all this attraction to “news trading” off short timeframes?!? why not wrap a strategy around the mid to long term trends, based on a sound fundamental principle & either buy dips or sell rallies in accordance with the major trend??

Would surely be a lot less stressful & financially more rewarding.

Tess, do not speak on things that you do not know. Just because you personaly have no idea how to properly trade the fundementals does not make it solely possible. That is the #1 missconception in forex. Out of all the different methods you can possibly trade in this market, the fundementals ARE by far the most reliable and the most profitable…

Just because babypips tells you that it is impossible to trade the news and that you will loose money if you try means absolutly nothing. All it means is that they know 99% of the people that try to trade the news don’t know what they are doing and end up doubling their account one day and then blowing it out the next. I haven’t lost a news trade in the 7 months that I have been doing it; properly. I consistently make 30%-100% a month and the only thing I really have to worry about is whether or not my broker is going to give me execution and what kind of spreads I’m dealing with.

My question regarding the use of technical analysis is: do you apply different technicals depending on the fundamentals?

Meaning, suppose your trading only focuses on two pairs, the EURUSD and GDPUSD. Do certain technicals complement certain fundamentals or currency pairs and are used specifically for that trade?

Otherwise, I assume that you find (develop) a set of technical indicators that you believe in and apply them to decide whether to pull the trigger on a trade setup by fundamental analysis.


Hey Tess!

Where you laughing your ass off when you read post #5, I sure was! Seems more often that babypips has attracted a lot of spam :confused:

The sad part is that it seems to be infiltrating legitimate topics :frowning:

Seems everyday you impress me Tess, I just still can’t get over the fact your named Tess :wink:

Now onto the topic. I think what we would say would be major news releases like NFP and such are merely noise! Trading news is not equal to confirming your position with fundamental studies. Be warned though I have not the slightest clue about fundamentals at all, but if I where going to learn I would want to learn about what ultimately effects a nation(s) economy in which case would strengthen their currency. So I would suggest try to get a broad picture of what effects a nations economic and currency strength. Once you figure that out then all you have to do is keeps tabs on things so you can predict a major trend change in a particular currency. After all, you must trade with the trend. A good way to figure out the trend is switch to the weekly chart and zoom out to 300+ bars and that should give you a clear picture. But if you want to be at the top or bottom of a major trend reversal then you have to learn and be very aware of what effects a currencies strength in the long term. I honestly believe if you build a decent trading plan base off of price action and/or technical indicators and/or candle/bar formation then you can trade successfully while you take your time in learning about such fundamental effects on a currency.

In summary I believe news relases are pretty much noise and one must figure out what effects the overall strength or weakness of a currency so you can try to be on the top or bottom of a reversal.

Lets take an example, look at eur weekly. It is obvious it was in a down trend from '96 to '02. It is also obvious that it has been in an uptrend from '02 to present. How could you infer that major shift? I have no idea, but if anyone could clue me in on how such would be determined that would be great :slight_smile:

Also, do you know why trading with the trend is so safe? My assumption is that it takes a lot to change a major trend like we see in Euro so you won’t wake up one morning and have the trend change on you and be freaking out about your position that are counter to the new trend.

Also another note to Tess. I keep looking at these bigger time frames and things just seems so much easier. First I started on 1 hour charts and 30 min charts and that last a year or so with no luck. Then I moved up to 4 hours and 1 hour and that only lasted a month. And now I am onto weekly and daily and I think I am in love :wink: Hopefully this is one of my final steps into becoming the master trader that I know I am! Trading longer term charts have taught me so much more than those lower ones which are purely noise!

Sorry if I am incoherent in this post. Been a long day and just hit 0100 of the next day. More tomorrow

Interesting topic. To me, the most valuable indicator is the COT. Where the institutions go, so does the momentum.