For a professional trader, analysis in forex trading does not only rely on one analysis, whether it is fundamental analysis or technical analysis only. The combination of the two will create a much more accurate reading than just relying on one. Two world renowned traders interviewed by Jack Schwager in his book Market Wizards Ed Seykota and Jim Rogers say that it is very unlikely that a trader can become a success if only a technical trader. In fact, he says, he has never met anyone who is a successful and rich technical trader. The combination of fundamentals and techniques that make a trader successful.
As Ed Seykota and Jim Rogers have pointed out, this time we will learn what fundamental analysis is, an analysis that many idealist traders forget about relying on technical indicators and technical techniques.
Fundamental trading analysis itself is an analysis that examines factors that affect the economic conditions of a country that directly impact on the movement of its currency. From knowing this factor factor that can then predict where the currency will move.
Data data that is usually used in a fundamental analysis, among others, is the policy of political or financial policy, economic indicators, social factors and also the condition of the economy whether it happens in the country or is happening globally. From this data data that then make a price fluctuation in a currency pair.
The easiest and easiest thing that can be taken as a reference is from the economic calendar that presents the latest economic data and updates from many important countries in the world that can move the market globally. In addition to the economic calendar that can be used as a reference, news and other economic sentiment can also be used as a reference such as interest rate hikes or middle east conflict that affect the rate of oil availability and affect world oil prices and also slightly affect the US currency.
As an example already mentioned, the increase in US interest rates. For a professional trader, the news of an increase in interest rates by the Fed is a major indication of the rise and strength of the US Dollar. From this economic sentiment we can adjust it with the currency pair we are trading, because this data will affect almost all major currency pairs, especially those in direct contact with the USD.
This example is just one of many fundamental news news that can be used as trading reference every day.
SOURCE, TYPES AND FACTORS IN THE FUNDAMENTAL ANALYSIS
By understanding the fundamental factor factors a trader will be able to clearly understand how a price can move to the current level, and where the price will move next. This fundamental analysis is a very effective analysis in understanding the movement of a market based on general economic conditions that can be combined with technical analysis to determine the rate of a currency.
There are several factors that can determine the movement of a currency which is then grouped into the following categories:
Economic growth
Monetary policy
Inflation rate
Unemployment rate
The housing sector
International trade and balance of payments
The level of consumer confidence
Business activities
Surplus / budget deficit
All of these are mostly issued by official government agencies, electronic print media either television, newspapers or from websites as well as individuals.
The best way to take advantage of fundamental news news like this is to wait for a market reaction, then to follow where the trend moves after the release data. It's true getting into the market before the data there is likely to get greater profits, but also automatically make the risk factor becomes greater.
As Ed Seykota and Jim Rogers have pointed out, this time we will learn what fundamental analysis is, an analysis that many idealist traders forget about relying on technical indicators and technical techniques.
Fundamental trading analysis itself is an analysis that examines factors that affect the economic conditions of a country that directly impact on the movement of its currency. From knowing this factor factor that can then predict where the currency will move.
Data data that is usually used in a fundamental analysis, among others, is the policy of political or financial policy, economic indicators, social factors and also the condition of the economy whether it happens in the country or is happening globally. From this data data that then make a price fluctuation in a currency pair.
The easiest and easiest thing that can be taken as a reference is from the economic calendar that presents the latest economic data and updates from many important countries in the world that can move the market globally. In addition to the economic calendar that can be used as a reference, news and other economic sentiment can also be used as a reference such as interest rate hikes or middle east conflict that affect the rate of oil availability and affect world oil prices and also slightly affect the US currency.
As an example already mentioned, the increase in US interest rates. For a professional trader, the news of an increase in interest rates by the Fed is a major indication of the rise and strength of the US Dollar. From this economic sentiment we can adjust it with the currency pair we are trading, because this data will affect almost all major currency pairs, especially those in direct contact with the USD.
This example is just one of many fundamental news news that can be used as trading reference every day.
SOURCE, TYPES AND FACTORS IN THE FUNDAMENTAL ANALYSIS
By understanding the fundamental factor factors a trader will be able to clearly understand how a price can move to the current level, and where the price will move next. This fundamental analysis is a very effective analysis in understanding the movement of a market based on general economic conditions that can be combined with technical analysis to determine the rate of a currency.
There are several factors that can determine the movement of a currency which is then grouped into the following categories:
Economic growth
Monetary policy
Inflation rate
Unemployment rate
The housing sector
International trade and balance of payments
The level of consumer confidence
Business activities
Surplus / budget deficit
All of these are mostly issued by official government agencies, electronic print media either television, newspapers or from websites as well as individuals.
The best way to take advantage of fundamental news news like this is to wait for a market reaction, then to follow where the trend moves after the release data. It's true getting into the market before the data there is likely to get greater profits, but also automatically make the risk factor becomes greater.
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