I want to make more money!!
If this is what you keep dreaming about for the major part of your day, then we can completely understand you. But let me ask you something. Have you ever thought about giving up your free time to feel like you are back in your classroom unless you actually enjoy that setting? Or, how would you feel about going back to your lousy 9-5 job, to trade your time for money? That sounds much better to most of you, doesn’t it?
However, what is it that comes first to your mind when we say fundamental analysis? Well, when we say fundamental analysis we are talking about news trading. The foreign exchange market moves depending upon the monetary policies and economic data of the nations, data like unemployment rates, consumer price index (CPI), interest rates, etc. But most people are incapable of putting together this data to make sense of it all.
Now unlike the stock market which is more fundamentally oriented, the FX market is technically pure. But a combination of both can put the odds highly in the favor of the trader especially when they’re correlating.
We here at Strictlychartsfx pay more attention to technical analysis as compared to fundamental analysis, as the market can react uncertainly to a certain new event. With various observations, the market makers use fundamental analysis to confuse the traders so that he would act impulsively and formulate a “fake” bias.
So, for example, consider, David is currently trading the currency pair EUR/USD and favors a bullish bias (Long) (uptrend) that speculates that the European Dollar will strengthen against the US Dollar, and an interest rate decision emblazons that the European interest rate strengthened, signaling an indeed bullish bias. However, from price action shown on the chart, the price plunged about 20 ticks forcing the unconfident trader to switch his bias to a bearish bias (short) (downtrend). Price went back to the initial direction, whipsawing and blowing David’s account. Stating this, fundamental analysis comes with high volatility meaning after a data is released (base on the impact of the data) it helps the market to move faster “higher volatility”.
Where can the data be found?
Such data can be found on our market watch section of this website.
Cable TV business channels like-
- Bloomberg TV
- CNBC
- Fox Business News
Or on websites like-
Great content! Keep it up ?
excellent