Fundamental Analysis

Both fundamental and technical analysis are essentials of forex trading. A blend of both can be great.

255_forex posted:
In Fx it's possible for a trader to make some money through Careful analysis of charts also knowns as Technical Analysis. However other are using fundamental analysis with the news events like NFP, and many other major news being analysed to execute a trade. From a professional point of view how does one learn to analyse Forex via Fundamentals since to me it's not easy to prediction the direction of Currencies pair through new outlets so what's the secret behind this one.

Sorry to bring up this topic, but I am a beginner and would like to start work in Fx trade, advise me where to get the start-up capital!

Releaseone posted:

255_forex posted:
In Fx it's possible for a trader to make some money through Careful analysis of charts also knowns as Technical Analysis. However other are using fundamental analysis with the news events like NFP, and many other major news being analysed to execute a trade. From a professional point of view how does one learn to analyse Forex via Fundamentals since to me it's not easy to prediction the direction of Currencies pair through new outlets so what's the secret behind this one.

Sorry to bring up this topic, but I am a beginner and would like to start work in Fx trade, advise me where to get the start-up capital!

I saved up my first capital for about three years. I worked at a terrible job, and every day was like hell. I earned pennies, but I didn't stop because I knew I couldn't work here all my life. After making a lot of money, I lost a lot of money on Fx trader, but I was a beginner then. Now everything is different; I earn decent money to live and do not deny myself anything. I try to help my friends, and I want them to work with me. So last week, I helped a friend to make his first deposit in Fx trader we just took a loan . Now that he has the money, we can teach him. It is not a fact that you will make a lot of money on your first trades. You have to learn to analyse the market every day.

As for me, this type of analysis may well bring a positive result to the trader.

Both technical analysis and fundamental analysis are helpful in forex trading. Technical analysis helps in understanding the historical price action that further helps in identifying patterns and determining possibilities of the future movements of the currency pair you are interested in. On the other hand, fundamental analysis works great when you want to know how political, economical, and social factors affect a currency pair so that you can make better trading decisions on the basis of currency’s intrinsic value.

lynellmalcolm posted:
Both technical analysis and fundamental analysis are helpful in forex trading. Technical analysis helps in understanding the historical price action that further helps in identifying patterns and determining possibilities of the future movements of the currency pair you are interested in. On the other hand, fundamental analysis works great when you want to know how political, economical, and social factors affect a currency pair so that you can make better trading decisions on the basis of currency’s intrinsic value.

I think the best strategy will be made when fundamental and technical are combined. Has anyone done this? I am not sure where to start

It is very important to be able to do correct market analysis. This will allow you to achieve significantly higher success rates!

@lynellmalcolm Both technical analysis as well as fundamental analysis are counterparts to each other. The technical analysis which is based on chart pattern, trends, price and volume behaviour presents the pictorial representation and makes it easier to understand the market reactions. Fundamental analysis on the other hand is a method of evaluating the intrinsic value of an asset.

deanetellez posted:
@lynellmalcolm Both technical analysis as well as fundamental analysis are counterparts to each other. The technical analysis which is based on chart pattern, trends, price and volume behaviour presents the pictorial representation and makes it easier to understand the market reactions. Fundamental analysis on the other hand is a method of evaluating the intrinsic value of an asset.

The way I see it is that fundamental analysis is more important for swing traders but technical is more important for short term traders

‌‌‌ ‌Both technical analysis and fundamental analysis are useful when it comes to trading. Technical analysis tells you about the market movements taking place and fundamental analysis tells you why these market movements are happening.

If you are a short-term trader, I would suggest using technical analysis and if you are a long-term trader, you can go for fundamental analysis. But if you can make use of both of them, you will be better off.

For fundamental analysis one needs to deep understanding of the economics of major currencies country. It's not just about news.. It's more than that.

@UweMoench Yes for fundamental analysis deep understanding of the economics is important. Many people think fundamental means just news. But news is just the reflection of it.

This is a fairly correct and interesting type of analysis that can show the correct picture of the market.

But I feel if someone is scalping, does this matters? I mean if someone is scalping on 3 hrs time frame or 1 minute time frame, does major economic events play a role?

jonathandaniel posted:
If you are a short-term trader, I would suggest using technical analysis and if you are a long-term trader, you can go for fundamental analysis. But if you can make use of both of them, you will be better off.

I agree with you.

I believe that fundamental analysis is not always possible. More than that, I feel that trading the news makes sense only during some periods which take place in political or economic life like elections in the USA or NFP or OPEC or something like that. I have no idea how to determine which news affect the currencies during relatively calm situation on the market.

In my opinion, both fundamental and technical analysis are quite similar to each other. They both fulfill the main function, they help to predict the future price movement, however for different timeframes and of course, the distinguishing trait is that they have different methods how to do it. Nevertheless, if we speak about how to master fundamental analysis or technical analysis then I should state that you should dedicate enough time to learning both of these practices of course in dependance of your preferable trading style. Fundamental analysis implies checking the news, watching the charts, but not for too long.

without proper analysis, little can happen in your work