Tag Archives: Fundamental

General Forex

Fundamental Scalping of Forex

Although technical indicator based trading is considered to be more important for trading at the Forex trading platform with the aim to locate exact entry and exit points yet it does not provide full-fledged information for setting up a comprehensive trading plan.

The sentiments of the Forex market are mostly determined by the geopolitical and economic events of the day and the key drivers of the market trend includes all the central banks of the world, multibillion USD hedge funds, 500 multinationals of Fortune and the other investment banks that provide trading services to these driving forces.

Moreover the trade positions at Forex are formulated through proper analysis of the economic and geopolitical events and also depend on the major announcements of the G-7 nations and the developments announced in the monetary policies.

Thus, in order to make thorough trade moves at the Forex market follow the rule of trigger fundamentally, the entry and exit points technically.

Generally there is a rule that are widely used by the traders is that those who depend on fundamental trading approach they should go on with longer time frame and should analyze the charts and indicators that comprises details of ling hours of forex trading while those who like to conduct trading through technical support they can go for short-term trades and follow the short-term charts and indicators.

If the traders are likely to use scalping for making trade position at the Forex trading platform then no issues in scalping in currency exchange so it is possible trade on the basis of fundamental indicators.
It is possible to scalp fundamentally and retail traders have the opportunity to pull out significant advantage against the large market players while executing trades.

But if it is very easy to trade fundamentally on the basis of the news and events then almost every trader would become rich, success is not so easy, but of course it can be be made easy to make your trades at the Forex market.

Not all the times the bad and good announcements of the monetary policies are responsible for driving the Forex trends up and down instead the Forex market moves on expectation and perceptions of the traders that they used to perceive from the forex market environment.

This means that relative comparative studies of the market driving forces are far better than the absolute ones. Like, if US reported quarterly GDP growth rate of 5% whereas the Eurozone having GDP results of only 1.5%. Then looking at first glance it would appear that the EUR/USD drop due to US GDP growth results showing stronger growth.

And if the market expected US GDP rate to be at 7% with Eurozone having 0.5% the situation would be exact opposite because the Eurozone news would have surpassed expectation whereas US results would be short.

However, depending fully on the expectation would not work for the traders to get success and stay at the market for long so it is the point where the perceptions need support of the technical indicators for assessing the truth of the Forex trends.

Forex Trading Articles

Some Notes on How to Trade Fundamental News Releases in Forex

Most traders that I know do not trade fundamental news releases in any financial markets. I have come to the Foreign Exchange market about 7 years ago and I have successfully traded these macroeconomic events for about a few years. From the very first days in the market I noticed that when economic news is released there are big moves in all financial markets, not only in forex. I asked myself if I could trade these events profitably and after a few years of time managed to create a profitable news trading system. Let me share a couple of tips with you.

First of all, I use technical analysis in my trading and even though news events that I trade belong to the field of fundamental analysis I manage to trade them technically. My technical tools in this type of trading strategy are channels, trendlines, candle patterns and an effective money management system. Risk management with the help of stop loss orders and maximum of 2 percent of capital risk per trade are key elements in this type of trading.

So, when I look at my economic calendar and I see that today there is some important economic news like: nonfarm payrolls, interest rate announcement, inflation report or GDP I open my charts and start drawing technical channels. A technical channel is an area between support and resistance where price has been contained for some time. I look at 4 hour charts to see the highest and lowest points in them. The highest point would be the upper part of the channel and the lowest point would be the lower part of the channel. When I find out those points I put 2 trendlines: one on the upper part of the channel and one on the lower part of the channel.

When there are about 5 minutes left for the announcement to be released I place one buy stop order above the upper channel ( 5 pips above it) and one sell stop order below the lower channel (5 pips below it). When the news is released it usually creates huge moves and prices start going up or down. If a currency pair jumps up, my buy order is triggered, if they start moving down, my sell order is activated. When one of the orders is opened I remove the other order and just go with the market wherever it goes: up or down. I also try to move my stop bit by bit in order to preserve the profits that I already have. When the move is over and the market cools down I either close my position myself, or allow the market to close it by moving my stop loss as close to the price as possible. In this way I trade the news at least twice a week and usually manage to make both trades profitable.

These are just general guidelines to trade news in forex. As trading is a risky business I recommend practicing your trading skills on a demo account before risking your real money. You should always remember not to risk more than you can afford to lose. Good luck in trading.

Forex Trading Articles

Fundamental Analysis in The Forex

The main objective of the investors and the traders is to earn maximum profits in the forex trading with the help of the different plans and the strategies. The fundamental analysis is there from a very long time since the nineteenth century. The Fundamental analysis purpose is to forecast about the future forex market activities on the base of the economic news and the data gathered. The Technical analyses as well as the Fundamental analysis both are required for the smooth trading activities. Although the technical analysis gives much importance to the price while on the other hand the Fundamental analysis accounts for the entire political, social and the economic factors of the economy for meeting the conclusions for the currency pair of the forex market. Also, the major focus of the fundamental analysis is to recognize the most strong forces that are behind the price action and after that preparing the strategies and plans on that basis. All the various factors in the fundamental analysis will play a role with the different points of time.

It becomes very essential to make a differentiation between the fundamental analyses in the trade forex market and the news trading. The forex markets instant response to the news and the events is typically irregular because there is no time for the evaluation and the assessment and preparation of the appropriate strategy very soon after the news release. The news trading relies more on the technical aspects rather than the fundamental analysis. In the fundamental analysis there is proper analysis and the study of the news data then after that it is worked upon to separate the important information from the irrelevant news.

Upon working on all the useful data of the forex news trading the bigger picture is prepared which can be put into use for the later parts of the forex trading for the future references. All of the economic happenings and the events act together because the single piece of information does not make much sense in the forex strategy if is used singly. The fundamental analysis is considered very tough but there are no proofs or the evidences for that.

Market Analysis

Forex Fundamental Analysis and Forex Technical Analysis

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There are two major methods used to analyze and forecast the behavior of the Forex market – Technical (chart) analysis and Fundamental analysis.

Forex Fundamental analysis is a type of market analysis which involves studying of the economic situation of countries to trade currencies more effectively. Most FOREX traders rely on analysis to make plan their trading strategy. The other common form of analysis is technical analysis.

Both are distinct in their own ways, but on the other hand both are considered useful forecast tools for any Forex trader. They work towards the same goal – in predicting price or movement of currency in the forex market.

In technical (chart) analysis trader studies the effect while the fundamentalist studies are about the cause of market movement. The more successful forex traders have been seen to combine both types of analysis for results that are fine tuned further.

Forex technical (chart) analysis, forecasting price movements & future market trends are based in charts study of past market action. Technical analysis is more focused on what has actually happened in the market, instead of what should ideally happen. It takes into account the price of currency and the volume of trading, and then charts are developed from such a data which is used as its primary tool. One big advantage of technical analysis is that the forex trading analysts can follow many markets and are capable of trading currency simultaneously.

Chart analysis is built on some basic and yet crucial principles. (i) Market action discounts everything! (ii) Prices move in trends, and (iii) History repeats itself.

There are five categories in Forex chart analysis theory: (i) Indicators (oscillators, e.g.: Relative Strength Index (RSI) (ii) Number theory (Fibonacci numbers, Gann numbers) (iii) Waves (Elliott wave theory) (iv) Gaps (high-low, open-closing) (v) Trends (following moving average).

For an aspiring forex trader, learning technical analysis skill is a major factor and her/his success depends on his in-depth knowledge to a great extent. One should also study about the Forex technical analysis tools while studying about Forex technical analysis.

Market Analysis

Use Fundamental Marketing Tips for Great Success

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The answers are not exhaustive but by prioritizing, implementing marketing strategies, marketing tools will all help to set up a marketing structure that will assist your business to grow more rapidly.


Achieving Customer Confidence


Customer uncertainty, cynicism, apathy, or perplexity is among the top reasons sales are not successful in business. It is your responsibility to present an image of knowledge, quality, reliability, first-rate customer service, and added value to your prospective customers to ensure that you gain their confidence.


If you haven’t visibly shown them the advantages and given them concrete reasons to do business with you, then they’ll be wary to commit and the sale will be lost to your rivals.


Effective Marketing


The probability of your business achieving brand recognition, integrity, and larger market share will significantly improve by marketing in many ways. The more ways the public is made aware of your business, the better it will be. Successful marketing is to a certain extent, the consequence of exposing your target market to your business name and your selling points regularly, in many different ways and as inexpensively as possible.


Genuine Passion


Having a genuine belief in your own business products or services will have a profound effect on prospective customers. Relaying your positive feelings in your sales copy and subsequent messages will instill greater faith in your business and make prospects feel safe and secure about purchasing from you.


Emotional Buying Triggers


Purchasing for the most part is an emotional decision. Encourage your prospects to feel good about dealing with your business, build a good rapport with them, and tell them how you can improve their lives or resolve their problems. This is an important achievement to make and is up there with the focus on the features and benefits of your product or service.


Disperse Mistrust


Inspire customer confidence in your business and prevail over possible feelings of mistrust by offering written guarantees of satisfaction when or if possible. In addition, you could show customer testimonies if possible.


Impose a Time Limit


Procrastination will be your biggest enemy where sales are concerned. Humans can be great procrastinators and you need to overcome their tendency to put it off until later or their indecisions to purchase now. People like that will always have a good reason to wait.


Therefore you should add a sense of urgency to your adverts, sales material and marketing messages. A number of prospects need to have a time limit or a reason to encourage them to take action immediately; this could be that there are limited supplies or that prices will increase after that time limit.


Form a Marketing Plan


A marketing plan is an essential element to the overall success of a business and a way to identify and get the most out of your strengths and opportunities. External pressures like your competitors should be analyzed their market position, share of the market etc.


Economic factors need to be considered, target market analysis. Marketing plans for your product or service, pricing, media strategies, expense budgets and any other thing that will be essential to facilitate the smooth running of your marketing campaigns.