Forex trading is classified mainly in 2 major kinds of trading: Technical analysis and Fundamental analysis. Most traders focus solely in technical trading, which is based on the analysis of price performance and chart patterns. Whereas, Fundamental analysis or Forex news trading is the analysis of the economic news events to take advantage of the movement and volatility that comes after the news, specifically when there is a surprise in the news release figures. The bottom line is, fundamental analysis looks at the economic news events while technical analysis looks at charts and indicators. Many Forex traders start with technical analysis, but you must also understand more about fundamental analysis in order to be alert to the news and consistently be more profitable through both methods.

Probably the most crucial tool and info that you will need to trade the news would be to have access toa Forex calendar. A Forex calendar was made to inform traders about major upcoming global financial news reports, for example Gross Domestic Product ( Gross Domestic Product ), Consumer Price Index (CPI), Retail Sales, and Unemployment figures. A nation's financial status will be a major sign of the value of its currency. Hence, a country with a healthy and strong economy have a strong currency, while the currency of an troubled economy will probably be weak. Traders can use this tool to evaluate their position in coming trades and make choices whether or not they ought to enter or exita trade.

A significant part of fundamental analysis is always to monitor the high impact reports, especially those currencies you often trade. The net is commonly the best way to have accessibility toa Forex calendar. However, several cost-free Forex calendars may have a couple of seconds delay in showing the release; so seasoned traders specializing in news trading could select to use a video or news wire service that will inform them of the news report figures right after its release. This really is crucial when you're trading the first market spike, specially when the actual news release is above or below market expectation.

The majority of Forex calendars will indicate the type of impact of a certain news event: high, medium, or low impact. Fundamental analysis traders commonly focus mostly in the high impact news, such as theU. S. Non- Farm Payroll, Interest Rates, Manufacturing and Service PMIs, and Unemployment rates.

One highly recommended site that are experts in Fundamental analysis trading is CurrencyNewsTrading. com. Expert Currency trader and mentor Henry Liu is not just an expert in fundamental analysis, but also combines technical analysis and market sentiment. The site gives plenty of free ideas, market headlines, market analysis, and tutorials in news trading. In addition, it has a extensive Forex calendar that concentrates only on the high impact news that are tradable and have historically moved the market.

Even if you're simply a technical trader, it is impossible not to consider the economic news events; at the very least you will have to monitor the future high impact reports in order to avoid trading over these times of high market volatility. Countless newbie Forex traders come to a rude awakening of the value of these news events after seeing a perfectly profitable trade turned into a loss in just mere seconds. By including fundamental analysis in your Currency trading, you'll have all of the available skills and knowledge to make more wise predictions; hence, you will be able to reduce your risks and make far more steady income.


 


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