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Forex fundamentals news forex brokerForex Fundamental Analysis. The basics of Forex fundamental analysis Practical use of fundamental analysis in Forex trading. Economic news releases often evoke strong moves in the currency market, creating a lot of short-term trading opportunities for breakout traders. However, not all news reports are tradable. Some of them may not have significant effect on the market while others do. So, before deciding on trading the upcoming news traders may want to find out whether the news is worth trading or not. Traders can find about the significance of the news by looking at the economic calendar's special features, such as, for example, marking all important news in red. There are two general approaches to trade news: Traders simply set Buy and Sell limit orders on both sides of a price channel, so when the news comes out one of the orders will probably be hit. Although this method is very simple, it also carries real risks of potentially hitting two orders: Buy and Sell as the market is shaken by the news report. In such "double-hit" situation traders will face losses on one or sometimes even both trades. 2 — By actually analyzing the data Traders can predict most probable outcome of the news by looking at such economic calendar fields as: "Forecast" and "Previous". Figures in those fields can give an idea about the current situation. Then, traders would watch the news report and pay attention to the actual numbers released. If the numbers come as a surprise — means they are not close to what was expected forecasted, then traders would consider opening trading position regarding to the situation. If the data carries positive surprise — they would open Long position, negative — Short. This news trading requires more attention from traders, but is also more effective as it carries lesser risks. Forex Fundamentals Course. 8 On Demand Lessons PLUS 2 Months of Live Coaching AND Live Trading.

Our Forex Fundamentals Course Contains. ALL the Ingredients For Trading Successfully in One Short, Simple Battle Tested Trading Course. Improve Your Trading in Eight Simple Lessons Followed by. 2 Months OF LIVE COACHING. Kathy and Boris will Answer your Questions & TRADE the Course Strategies in LIVE Markets. In the 10+ years that we have been trading together we have survived through some of the most volatile markets in history and learned many lessons that we would like to share with you. We’ve distilled that hard won knowledge into a simple, effective online course that will show you how to use Fundamentals to Conquer the Currency Market. Most traders realize that economic and geo-political news controls currency markets – but amidst the daily deluge of data, few traders have the skill or the patience to separate the signal from the noise in order to construct intelligent, professional trades. Our course allows you to skip the tedious, trial and error approach and quickly learn what it takes to make professional currency trades. In eight short and simple lessons we will teach you what you need to know about trading fundamentals. No useless fluff. No boring academic complexity. Just solid, practical knowledge that traders can put to their advantage in the market every single day. In addition to Fundamentals, we will show you how we develop Trading Strategies, share our latest models, and show you proper trading plans and money management techniques to give you an A to Z understanding of what it takes to trade the currency market. 3 On Demand Lessons Per Week PLUS 2 Months of LIVE COACHING and TRADING.

After you’ve completed the 8 on-demand videos we will invite you to our Live Coaching sessions where we will answer questions and show you how to apply EVERYTHING we taught you online in LIVE Market conditions trading using our own REAL MONEY accounts. You’ll get to watch us put on trades in real market conditions and learn to trade FX the BK way. Here’s what you will Learn: Lesson #1 -- An Easy Guide to Understanding the Global Economy -- Macroeconomics for Traders. + What is Economics and Why Should You Care? + What are the 3 Ms of the Forex market that Drive Most Currency Movements? + How You Can Filter Daily Economic News to a Few Key Powerful Facts to Help Guide Your Trades. Lesson #2 -- The Fundamentals that REALLY Move Markets -- Everything from Central Bank Intervention to Fixings to Fair Value of Currencies. + Everything you Need to Know about High Beta (Risk) vs. Safe Haven Currencies + Learn How to take Advantage of Central Bank Interventions + Learn why Daily Fixings can Affect Your trades and What You Can Do About it. Lesson #3 -- How to Predict Economic Data Like a Wall Street Pro. + Top 10 Most Important Monthly Reports Every Currency Trader Should Know + Learn to Forecast Data just Like a Wall Street Economist + Learn which Economic Reports may predict Employment, GDP and Retail Sales reports for all the Major Currency Pairs + Learn the Edge to Anticipate News. Lesson #4 -- Peek Over Our Shoulders -- A Private Tour of Our Trading Screens + Shortcut to all the Key Resources every Currency Trader Needs at His Her Fingertips + Find out How to get Real Time Economic Data for FREE + The Best Charting Software Packages to Track the Market. Lesson #5 -- How to Trade the EUR, USD, GBP, JPY + Why is EURUSD different from all other pairs? + How can you profit from GBPUSD volatility? + What Makes USDJPY Tick. Lesson $6 -- How to Trade the AUD, NZD, CAD, CHF. + What are the best hours to trade AUDUSD? + Why is the Canadian dollar no longer an oil play? + What single event could force the Swiss franc to break its peg? Lesson #7 -- How to Turn Economic Data into Currency Trades. + Learn how to position for big moves by trading news proactively + Learn how look for small, steady setups by trading news reactively + Learn a step-by-step news day trading system that aims for 4 out of 5 winning trades.

Lesson #8 -- Proper Money Management Rules To Protect Your Account + Learn the single biggest mistake all forex traders make and how you can try to avoid it + What are the hidden risks of trading Forex and what can you do to protect yourself + How to make risk control an automatic part of every trade you place. PUTTING IT ALL TOGETHER. + How to develop a Professional Trading Plan with a Top Down Approach + How to fuse Fundamentals, Technicals and Sentiment to time the trade. + How to manage the trade for maximum profit potential. Trading forex carries a high level of risk and may not be suitable for all investors. 3 On Demand Lessons Per Week PLUS 2 Months of LIVE COACHING and TRADING with our REAL MONEY ACCOUNT! Where to Find Forex News and Market Data. A quick Yahoogleing (that’s Yahoo, Google, plus Bing) search of “forex + news” or “forex + data” returns a measly 30 million results combined. 30 MILLION! That’s right!

No wonder you’re here to get some education! There’s just way too much information to try to process and way too many things to confuse any newbie forex trader. That’s some insane information overload if we’ve ever seen it. Currency price moves because of all of this information: economic reports, a new central bank chairperson, and interest rate changes. News moves fundamentals and fundamentals move currency pairs! It’s your goal to make successful trades and that becomes a lot easier when you know why price is moving that way it is. Successful forex traders weren’t born successful; they were taught or they learned. What they can do is see through the blur that is forex news and data, pick what’s important to traders at the moment, and make the right trading decisions. Where to Find Forex News and Market Data. Market news and data are available through a multitude of sources. The internet is the obvious winner in our book, as it provides a wealth of options, at the speed of light, directly to your screen, with access from almost anywhere in the world. But don’t forget about print media and the good old tube sitting in your living room or kitchen. Individual forex traders will be amazed at the sheer number of currency-specific websites, services, and TV programming available to them. Most of them are free of charge, while you may have to pay for some of the others. Let’s go over our favorites to help you get started. Traditional Financial News Sources. While there are tons of financial news resources out there, we advise you to stick with the big names.

These guys provide around-the-clock coverage of the markets, with daily updates on the big news that you need to be aware of, such as central bank announcements, economic report releases, and analysis, etc. Many of these big players also have institutional contacts that provide explanations about the current events of the day to the viewing public. Real-time Feeds. If you’re looking for more immediate access to the movements in the currency market, don’t forget about that 80-inch flat screen TV in your bathroom! Financial TV networks exist 24 hours a day, seven days a week to provide you up-to-the-minute action on all of the world’s financial markets. In the U. S., the top dogs are (in random order), Bloomberg TV, Fox Business, CNBC, MSNBC, and even CNN. You could even throw a little BBC in there. Many forex brokers include live newsfeeds directly in their software to give you easy and immediate access to events and news of the currency market. Check your broker for availability of such features not all brokers features are created equally. Economic Calendars. Wouldn’t it be great if you could look at the current month and know exactly when the Fed is making an interest rate announcement, what rate is forecasted, what rate actually occurs , and what type of impact this change has on the currency market? It’s all possible with an economic calendar. The good ones let you look at different months and years, let you sort by currency, and let you assign your local time zone. 3:00 pm where you’re sitting isn’t necessarily 3:00 pm where we’re sitting, so make use of the time zone feature so that you’re ready for the next calendar event! Yes, economic events and data reports take place more frequently than most people can keep up with. This data has the potential to move markets in the short term and accelerate the movement of currency pairs you might be watching. Lucky for you, most economic news that’s important to forex traders is scheduled several months in advance.

So which calendar do we recommend? We look no further than our very own BabyPips. com forex economic calendar to provide all that goodness! If you don’t like ours (which we highly doubt), a simple Yahoogleing search will offer up a nice collection for you to examine. Market Information Tips. Keep in mind the timeliness of the reports you read. A lot of this stuff has already occurred and the market has already adjusted prices to take the report into account. If the market has already made its move, you might have to adjust your thinking and current strategy. Keep tabs on just how old this news is or you’ll find yourself “yesterday’s news.” You also have to be able to determine whether the forex news you’re dealing with is fact or fiction, rumor or opinion.

The rumors help to produce some short-term trader action, and they can sometimes also have a lasting effect on market sentiment. Institutional traders are also often rumored to be behind large moves, but it’s hard to know the truth with a decentralized market like spot forex. There’s never a simple way of verifying the truth . Your job as a forex trader is to create a good trading plan and quickly react to such news about rumors after they’ve been proven true or false. Having a well-rounded risk management plan, in this case, could save you some moolah! And the final tip: Know who is reporting the news. Are we talking analysts or economists, economist or the owner of the newest forex blog on the block? Maybe a central bank analyst? The more reading and watching you do of forex news and media, the more finance and currency professionals you’ll be exposed to. Are they offering merely an opinion or a stated fact based on recently released data? The more you know about the “Who”, the better off you will be in understanding how accurate the news is. Those who report the news often have their own agenda and have their own strengths and weaknesses. Get to know the people that “know”, so YOU “know”. Can you dig it? Forex Fundamental Analysis.

Our Forex fundamental analysis is written by experienced economists who can clearly extrapolate market lessons from daily news events. Eliminate the need to analyze the news independently by reading daily fundamental analysis from DailyForex. We’ve done the hard work for you, so that you can spend more time in the trading room and less time in the news room. Forex Fundamental Analysis. Donald Trump was right to surmise that the direct Chinese US discussions on trade issues between the two nations would not bare fruit. Lots of voices have accused China of manipulating the Yuan for commercial advantage over a number of years. July is usually a good month for the balance of UK government finances since many self-employed people submit the second of their self-assed tax payments to the Treasury that month. The nation of Greece will be able to finance itself through international money markets again, having completed the EUIMF bailout process. Last week was a largely negative affair for the world’s major stock markets with only the Dow Jones making any ground. The official rate of inflation in the UK has edged up for the first time since November 2017. The economy of Japan is the third largest in the world behind those or the USA and China, respectively. A New York Federal Reserve report released on Tuesday showed that American’s borrowing hit $13.29 trillion in the second quarter of 2018. The US economy managed to produce 209000 jobs in July. The level is well above the number needed to provide employment for new entrants into the US job market when retirements and morbidity is factored in. Last week was a largely negative affair for the world’s major stock markets with only the Nasdaq and FTSE markets making any ground.

The world had a taste of how the markets would react to the UK leaving the EU immediately after the referendum on 23616 – Sterling fell heavily against all other major currencies. Currently, as a full member of the EU, the UK enjoys the best possible trading relationship with the EU. A UK interest rate hike has been on the cards for quite some time, but the Monetary Policy Committee of the Bank of England always found a compelling reason to defer it. Last week was a largely negative affair for the world’s major stock markets with only the US markets making any ground. We live in a global economy. A clear example of this is the fact that 80% of cars manufactured in the UK are for the export market and contain components sourced from across Europe. Free Forex Trading Courses. Want to get in-depth lessons and instructional videos from Forex trading experts? Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders. Most Visited Forex Broker Reviews. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors.

As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review.

In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly. The Forex Guide to Fundamentals, Part1: What is a Fundamental? Your Forecast Is Headed to Your Inbox. But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. Your demo is preloaded with ?10,000 virtual funds , which you can use to trade over 10,000 live global markets. We'll email you login details shortly. You are subscribed to Walker England. You can manage you subscriptions by following the link in the footer of each email you will receive. An error occurred submitting your form. Please try again later. Fundamentals track economic changes Traders want to buy the currency with strong fundamentals Check the economic calendar for upcoming events. Trade analysis is normally grouped into two categories, Technical and Fundamental. Normally when developing a trading strategy, traders will choose one or even a combination of both forms of analysis when developing a trading plan.

While its always important to know and understand key technical levels, it is also good to know what is fundamentally driving market price. This series of articles is geared to better understating Fundamental trading, and how shifts in market data can affect market price. Today we will begin by reviewing exactly what fundamentals are and where we can find pertinent market data to make better trading decisions. What is a Fundamental. So what is a market fundamental? A market fundamental is a piece of specific data or event that causes money to flow either in or out of an underlying asset. As a trader we attempt to find the strongest currency and pair it with a weaker one. This means when trading a fundamental strategy, we will be looking for a series of data points that makes one more attractive than the other. Knowing this, traders should be factoring in things such as employment data, inflation, interest rates and even political turmoil before buying a particular currency. If the underlying fundamental data is improving or getting stronger we have found a candidate currency to buy relative to another with poor performance. So now that you are a little more familiar with what a fundamental is, now we need to find all this data so we can make an educated trading decision. Every good fundamental trader should have access to an economic calendar. This is where we can see which data points are being released from week to week. DailyFX updates an economic calendar HERE providing insight into what day and time releases are held, along with past data and current expectations. Traders should keep an eye on the calendar at all times, as data hits or misses expectations this will ultimately change our fundamental outlook on a currency.

Which Events to Track. The final question is which events we should follow. This is a fair question, because there is a slew of economic data released each week! To help make things easier, the high importance events have been marked on the economic calendar as depicted above. These are the events that our normally monitored by policy makers such as central banks and have the ability to immediately influence market price. While these events are certainly important, just watching events such as this week’s employment figures for the US may not give us an overall opinion of the market. The key to trading fundamentals is to combine a variety of data points to then make an educated trading decision. As we continue our study of fundamentals we will take a look at the main influences on an economy and how they can mold our trading opinion. Watch the Market. As a fundamental trader, it is important to know how different events affect the valuation of a currency. To follow along with the market, make sure to sign up for a Free Forex Demo account with FXCM. This will allow you to monitor, track and trade currencies in real time. This will conclude our first look at Forex fundamentals.

In our next edition, we will begin looking at capital flows and how they can affect price and our outlook on the market! ---Written by Walker England, Trading Instructor. To contact Walker, email [email protected] com . Follow me on Twitter at @WEnglandFX. To be added to Walker’s e-mail distribution list, CLICK HERE and enter in your email information. New to the FX market? Save hours in figuring out w hat FOREX trading is all about. Take this free 20 minute “New to FX” course presented by DailyFX Education. In the course, you will learn about the basics of a FOREX transaction, what leverage is, and how to determine an appropriate amount of leverage for your trading. Register HERE to start your FOREX learning now! DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

The Fundamentals Of Forex Fundamentals. Those trading in the foreign-exchange market (forex) rely on the same two basic forms of analysis that are used in the stock market: fundamental analysis and technical analysis. The uses of technical analysis in forex are much the same: price is assumed to reflect all news, and the charts are the objects of analysis. But unlike companies, countries have no balance sheets, so how can fundamental analysis be conducted on a currency? Since fundamental analysis is about looking at the intrinsic value of an investment, its application in forex entails looking at the economic conditions that affect the valuation of a nation's currency. Here we look at some of the major fundamental factors that play a role in a currency's movement. Economic Indicators Economic indicators are reports released by the government or a private organization that detail a country's economic performance. Economic reports are the means by which a country's economic health is directly measured, but remember that a great deal of factors and policies will affect a nation's economic performance. These reports are released at scheduled times, providing the market with an indication of whether a nation's economy has improved or declined. These reports' effects are comparable to how earnings reports, SEC filings and other releases may affect securities. In forex, as in the stock market, any deviation from the norm can cause large price and volume movements. You may recognize some of these economic reports, such as the unemployment numbers, which are well publicized.

Others, like housing stats, receive less coverage. However, each indicator serves a particular purpose and can be useful. Here we outline four major reports, some of which are comparable to particular fundamental indicators used by equity investors: Gross Domestic Product (GDP) GDP is considered the broadest measure of a country's economy, and it represents the total market value of all goods and services produced in a country during a given year. Since the GDP figure itself is often considered a lagging indicator, most traders focus on the two reports that are issued in the months before the final GDP figures: the advance report and the preliminary report. Significant revisions between these reports can cause considerable volatility. The GDP is somewhat analogous to the gross profit margin of a publicly traded company in that they are both measures of internal growth. Retail Sales The retail-sales report measures the total receipts of all retail stores in a given country. This measurement is derived from a diverse sample of retail stores throughout a nation. The report is particularly useful as a timely indicator of broad consumer spending patterns that is adjusted for seasonal variables. It can be used to predict the performance of more important lagging indicators, and to assess the immediate direction of an economy.

Revisions to advanced reports of retail sales can cause significant volatility. The retail sales report can be compared to the sales activity of a publicly traded company. Industrial Production This report shows change in the production of factories, mines and utilities within a nation. It also reports their "capacity utilizations," the degree to which each factory's capacity is being used. It is ideal for a nation to see a production increase while being at its maximum or near maximum capacity utilization. Traders using this indicator are usually concerned with utility production, which can be extremely volatile since the utilities industry, and in turn the trading of and demand for energy, is heavily affected by changes in weather. Significant revisions between reports can be caused by weather changes, which in turn can cause volatility in the nation's currency. Consumer Price Index (CPI) The CPI measures change in the prices of consumer goods across over 200 different categories. This report, when compared to a nation's exports, can be used to see if a country is making or losing money on its products and services. Be careful, however, to monitor the exports - it is a popular focus with many traders, because the prices of exports often change relative to a currency's strength or weakness. Other major indicators include the purchasing managers index (PMI), producer price index (PPI), durable goods report, employment cost index (ECI) and housing starts.

And don't forget the many privately issued reports, the most famous of which is the Michigan Consumer Confidence Survey. All of these provide a valuable resource to traders if used properly. So, How Are These Used? Since economic indicators gauge a country's economic state, changes in the conditions reported will therefore directly affect the price and volume of a country's currency. It is important to keep in mind, however, that the indicators discussed above are not the only things that affect a currency's price. Third-party reports, technical factors and many other things also can drastically affect a currency's valuation. Here are some useful tips that may help you when conducting fundamental analysis in the forex market: Keep an economic calendar on hand that lists the indicators and when they are due to be released. Also, keep an eye on the future; often markets will move in anticipation of a certain indicator or report due to be released at a later time. Be informed about the economic indicators that are capturing most of the market's attention at any given time. Such indicators are catalysts for the largest price and volume movements. For example, when the U. S. dollar is weak, inflation is often one of the most-watched indicators.

Know the market expectations for the data, and then pay attention to whether the expectations are met. That is far more important than the data itself. Occasionally, there is a drastic difference between the expectations and actual results. If so, be aware of the possible justifications for this difference. Don't react too quickly to the news. Often numbers are released and then revised, and things can change quickly. Pay attention to these revisions, as they may be a useful tool for seeing the trends and reacting more accurately to future reports. The Bottom Line There are many economic indicators, and even more private reports, that can be used to evaluate forex fundamentals. It's important to take the time to not only look at the numbers, but also understand what they mean and how they affect a nation's economy. When properly used, these indicators can be an invaluable resource for any currency trader. Forex fundamentals news forex broker.

From everyone here at Currency News Trading, we wish you a wonderful Christmas and Happy New Year. Due to the market condition, the next couple of weeks we will not be trading the news. As a matter of fact, we should avoid news altogether until 2018, perhaps the first tradable release would be the Nonfarm . Forex Weekly Outlook September 18. September 18, 2017 0 Comment(s) Market Review US stock markets advanced to new all-time highs this past week as traders maintained risk sentiment in spite of a barrage of aversion events such as Hurricane Irma, Equifax credit breach, more contempt from the North Korean regime and a terrorist attack in London. Domestically, the US government continued its struggle in tax reform while . CURRENCY OUTLOOK SCORES. Outlook Score is a score assigned to the currency based on economic indicators and high-impact news releases such as: central bank speeches, breaking news, political developments, etc… A score between -3 to +3 is assigned to each scheduled events based on its importance, market focus, and surprise factor. For instance, the Non-farm Payroll should have more impact than the New Home Sales figure in the U. S., but if the New Home Sales comes out 100K more than forecast, it should have equal effect on the USD (as compared to NFP) in the long-term. The Outlook Score is the summary of all of the individual scores assigned to each news releases that matters, and the score is carried over from month to month… this is based on the idea that fundamental sentiments are also carried over from month to month… The score is modeled after the PMI (Purchasing Manager’s Index) releases, so we start at 50, and any number above 50 is considered positive, or below 50 as negative: The Truth about Forex Fundamentals and Trading the News. Today’s Lesson Is Very Good .

This is Probably One of the Most Crucial Aspects of Trading. ” To trade the news or to trade the price action ?”. Today I share my views on this interesting topic which can often be the main reason a trader fails. I am not a fan of trading the news or fundamentals, and this article explains why. When You Finish Reading This Article, Please Remember To Click the Facebook Like Button Below & Make a Nice Comment Below or Post it To Twitter. Thanks and enjoy Today’s Lesson. Nial. Forex news and Forex fundamental variables are topics that many traders email me about each week. They usually want to know if they should pay attention to the news as it relates to their trading and (or) how to incorporate fundamental economic news variables into their trading. The fact of the matter is that as a price action trader I believe that all fundamental variables are reflected in the price action on a plain vanilla price chart. The primary reason that I believe this is because price action is the final result of all catalysts and participants in any financial market.

Forex news and other fundamental variables are simply catalysts that cause markets to move, and since price action trading involves analyzing price bars on a “naked” price chart, I am primarily concerned with analyzing the end result of the news: price movement. Now, there may be some diehard economists and fundamental traders who will disagree with what I am saying here. So, let me make myself clear, I am not saying that news cannot be used or that fundamental traders can’t make money in the markets. What I AM saying, is that the effectiveness and relevance of price action trading cannot be disputed. As price action traders we want to make our trading simple, and in order to simplify we remove the news, economists, and so-called market gurus. Let’s dissect this issue further… Over-analyzing Forex fundamental variables… Many traders over analyze the news and this ends up confusing them and causing them to second guess themselves. There are just too many variables each day as far as news and fundamentals are concerned for any individual trader to have enough time to make effective use out of them. You will literally burn your eyes out trying to read all the economic news that can influence the Forex market each day. The point being; you can bypass all of this unnecessary over-analyzing by learning to read a plain vanilla price chart. You see, fundamental news is simply a catalyst for price movement, so, it only makes sense that we trade based off the final result of all Forex and economic news; price action. We will discuss this more in-depth in the last part of this article. Also, most retail traders do not have access to the type of “in-depth” and “inside” information that would allow them to take advantage of an impending news event. Furthermore, paying to get access to “up to the minute” economic news is basically a huge waste of money. It’s only going to introduce more variables for you to over-analyze and take your focus off the price action of the market.

Why trying to predict price movement based on the news is like gambling… You cannot predict what the market will do based on the news. The market often reacts counter to what you would expect based on a particular news release because of the issue of “buying the rumor selling the fact”. Markets operate on traders’ investors’ expectations of the future, so when a news event actually happens, price will often move in the opposite direction to what the implication of the news event might be. This is because traders have traded their expectations already, and so once the news is out there is nothing left to expect from that particular piece of news. The bottom line is that you never really know how the market will react to any particular news event, and trying to guess what the market will do based on some economic news release is not a definable or effective edge, it’s basically a blind gamble. Once you learn how to identify and trade a handful of simple yet high-probability price action trading strategies, you will have an effective trading edge that you can use to achieve success in the markets over a period of time. What you DO need to know about Forex news… While we do not need to know everything about all the fundamental forces that cause price to move, it is good to know what the most volatile economic news releases are and when they are released. This is because if you are in a profitable trade, you do not want to lose that profit or have it turn into a loss because the market became “spooked” or surprised about a particular piece of news.

We call this a “knee-jerk” reaction, and sometimes these reactions can be very quick and very significant. So, it’s good to know when the most volatile news releases are coming out so that if you are up with a risk reward of over 1:2, you can lock in that profit or you may simply want to move to breakeven. This is part of Forex trade management, and we need to be good managers of our trades because our number one goal is to protect our capital, and we don’t want winners turning into losers. • What news events are most volatile? The following economic news releases are generally the most important for any country. Depending on the current state of the economy, the relative importance of these releases may change; therefore, they are not in order of significance here (they are actually in alphabetical order). For example, unemployment may be more important this month than inflation or interest rate decisions. 1. Business sentiment surveys 2. Consumer confidence surveys 3. Gross Domestic Product (GDP) 4. Industrial production 5. Inflation (consumer price or producer price) 6. Interest rate decision 7. Manufacturing sector surveys 8. Retail sales 9. Trade balance 10. Employment Unemployment (Non-Farm Payrolls) As price action traders we only want to know that there is volatility coming, we don’t ever want or need to “guess” what will happen based on some piece of economic news. To learn more about these economic news events check out this article: Major Economics Events in Forex Trading, and to see the upcoming volatile news events for the next 24 hours, you can always check out my daily Forex market commentary, just scroll down to the bottom where it says “upcoming important economic announcements”. My final thoughts on Forex news and fundamental variables… Global economic variables are the catalysts that cause all financial markets to move. However, it is not the actual news events themselves that we should be concerned with, instead we need to be concerned with the final result of economic news events; price movement. The easiest and most effective way to trade the Forex market is by learning to take advantage of simple, effective, and repetitive price action patterns that form in the markets as the end result of these global economic price catalysts. To become too concerned with Forex news and fundamental variables is not being able to see the forest for the trees.

The “forest” of the Forex market can be seen by looking at a daily price chart; this shows you the most up to date and relevant picture of the market. You can easily get lost in this forest by spending too much time analyzing the “trees”, such as all the different news events that come out each day. If you want to learn how to profit consistently in the market, you need to know what you are looking for. Learning to trade with price action strategies can give you the edge you need, so that you know what you are looking for every single time you check your charts. Forex news has its place as a catalyst that causes price to move. But, if you don’t understand how to read the natural price action on a plain vanilla price chart, all the time-consuming fundamental analysis in the world will not mean a thing. Warning: Beware Of Trading Forex News And Fundamentals. In case you’ve been living under a rock for the last 50 years, you know this blog is about price action trading. However, what you might not know is that I pay little to no attention to Forex news and fundamentals. In fact, I believe that focusing too much on Forex news and fundamental variables has a negative effect on a trader’s performance. It is my belief that price is the ultimate “indicator” and that it reflects every variable that affects a market.

I know that many of you try reading numerous Forex news articles to “figure out” what price is likely to do next, or even try to “trade the news” each week, I know this because I get emails about it every day. So, in today’s lesson, I am going to explain to you why you are wasting your time when you follow the news too closely, and why you should stop this counter-productive habit right now. “Buy the rumor, sell the fact” There’s a reason why the saying “Buy the rumor, sell the fact” has been around on Wall Street for over a hundred years. Generally speaking, the reason is because the big players in the markets; the guys who REALLY make the market move, mainly trade based on their expectations of the future, NOT so much on facts that have just been released. Thus, upcoming economic news releases are almost always factored into the price of a market. If this month’s Non-Farm payrolls report is expected to show that 200,000 jobs were added last month, then traders are currently trading the EXPECTATION of 200,000 new jobs and their beliefs on how THAT EXPECTATION will affect a particular market. Now, unless you are an illegal insider-trader, you won’t have access to the actual jobs number until after it’s released. What’s the point you ask? Well, in short, the actual economic number is almost totally irrelevant. Why? Well, because by the time the number is released, all the big boys have already traded their beliefs of how the expected number will affect the market. For example, if our 200,000 Non-farm payroll number comes in at exactly 200,000 it could actually make the market go down, because everyone already bought into the market with an expectation of 200,000 jobs or more being a positive sign. So, if the number comes out at 200,000 exactly, no one with any clout is going to want to buy anymore because the number didn’t “surprise to the upside”, as the market analysts like to put it. I am trying to explain to you guys that trading Forex news releases is essentially the same as gambling your money in the market. You never know how the market is going to react to any particular news release, and you can’t trade based off the logical thinking that “a positive number on the economy will make the market go up and a negative number will make it go down”…

because everything is usually factored in by the time the number comes out! That’s why beginning traders and traders who focus too much on news find themselves getting chopped up every time they try to trade the news. In short, it’s a futile game that seems logical on the surface but really is nothing more than a roll of the dice at the casino. It’s all in the price. As a price action trader, I believe that all fundamentals and Forex news releases are reflected and can be traded via the price action on a plain vanilla price chart. The main reason why I believe this is because news events and other variables are nothing more than catalysts that cause the market to move. But, HOW the market ultimately moves as a result of them is a different story, and this story is ultimately reflected via the price movement on a price chart. Thus, I am not concerned with the thousands of news events that can affect a market each week, because I know the biggest “short-cut” to reading and trading a market is by learning to read and trade its price action. Price action is essentially its own language, and this language can be thought of as a reflection of what every market variable has caused the market to do, as well as which direction the market is most likely to move next. Sometimes, these reflections result in repetitive price action patterns that are high-probability predictive tools that can be used to gauge the future direction of a market, in this way, price action is actually the most accurate “leading indicator” in existence. So, it’s really quite simple; when you learn to read the market and trade it based off simple price action strategies, you are trading off of all fundamental variables via their representation in price action form on a price chart. The psychological trap of believing that “more is always better” More is not always better, and especially as it relates to analyzing forex news and economic data. You see, there is simply so much economic information available everyday on the internet that you can’t possibly make use of it all. It’s a proven fact that traders who trade more often make about 13 less money over the long run than traders who trade less often. In other professions, “more” IS usually better, but because trading is mostly dependent on you being objective, disciplined, and trading with patience…

analyzing increasing amounts of economic news variables will likely decrease your chances at achieving success as a trader because you will be over-analyzing, over-thinking, and as a result, over-trading. Fundamental analysis is not a complete waste of time. Now, I’m sure I will get some flack over this article from some diehard fundamental traders who are totally brain-washed that they can predict what the market will do next from their $400 a month news service subscription (after all you don’t want to admit you are blowing $400 a month for nothing). So, let me be clear, I am not saying that Forex news and fundamentals are not useful or that it’s impossible to make money by following them. But, what I AM saying is that you do not NEED them, and in my humble opinion they usually work to confuse and complicate a trader’s mindset. The effectiveness and practicality of trading solely off the price action of a market cannot be ignored. My goal as a trader and a trading mentor so to trade in a simple and clean manner, without confusing and contradictory news variables, economists, or market analysts telling me why the “euro is certainly going to fall off a cliff because Greece had a poor bond sale”… that crap just doesn’t matter to me because I choose to trade the price action depiction of the news variables, rather than some analyst’s interpretation of what they MIGHT do to the market. However, I do need to mention how news releases can affect open trades…because I literally get emails about this everyday. So, for all of you wondering, here is my official statement on what to do with open trades prior to big news releases like Non-Farm payrolls or GDP… If I am in a trade and up 2 times my risk or more and a big report like NFP is about to come out, 9 times out of 10 I am locking in that 2 times risk reward and letting the market due it’s “thing”. If I am in a trade that’s hovering near breakeven prior to NFP or GDP or ABC (ABC is not really a news release, that was supposed to be a joke)…

I will usually keep the trade open and either take the knee-jerk reaction stop-out at my pre-determined stop loss level, or I will sit back and watch my trade rocket off in my favor and likely close out the position for a large gain shortly thereafter, or keep it open and trail my stop at my discretion. Now, if I am not in a trade about 24 horus prior to a big volatile news release, I will generally wait to enter the market until after the release. If you want to know which news releases are “big and volatile”, check out the section on fundamental analysis in my beginner’s forex trading course. What will you do now? Now that you know why trying to trade the news or even concentrating on it too much can actually hurt your trading, what will you do? The ball is in your court. Are you ready to accept that trading off the news is irrational and pointless? Or are you going to hang on to your old news-trading habit and continue to try and “figure out” what is going to happen next? The truth is that you can never figure out what will happen next, all you can is trade the market with a high-probability trading edge and make sure your winning trades out-pace your losers, as well as not over-trade or over-leverage your account. Trading the market without any news variables influencing your decisions takes a huge amount of pressure and confusion off your shoulders. You don’t have to sit there biting your nails before Non-Farm Payrolls comes out anymore, and you don’t have to stay up all night reading some analyst’s forecast for the euro. Less information to digest means less confusion and the elimination of analysis-paralysis, A. K.A chasing your tail around in circles trying to “figure” shit out that simply can’t be “figured out”. I teach my students how to read and trade based off the “pure” price action of the markets. I really feel that people who incorporate news and other fundamental variables into their trading decisions are “polluting” the raw and pristine “waters” of the market.

Part of my core trading philosophy is to use the natural price action of a market to anticipate what the market is most likely to do next…not to “figure it out”. I know I can never know 100% for sure what is going to happen next in the market, however, after 11 years of trading it’s my belief that we can use price action to trade the market with a high-probability edge. Price action is the all-encompassing “key” to reading a market; it reflects all fundamental variables and gives us an effective and simple way to make use of them. Thus, we need to “listen” to a market’s price action because it is truly the heartbeat of a market and shows the hands of all market participants at any point time; we cannot ignore this fact. So, if you’re ready to shed the confusion and contradictory nature of Forex news and fundamental variables, check out my Forex Price Action Strategies Trading Course to learn more. Forex Fundamentals Trading Strategies. The basic analysis in the stock market is to measure the real value of companies and invest in this type of calculations. The basic analysis in the stock market is to measure the real value of companies and invest in this type of calculations. To some extent, this is done in the retail currency market. Forex sellers appreciate the currency companies and their countries, and the cash statement uses cheap ads to get real value. News reports, economic data and political events in a country arrive in a country that is similar to the news used by investors to get an idea of ??value.

Due to many factors, including economy and economic strength, this value varies over time. First, these merchants are looking for a country to appreciate the money. A book on this subject can be written based on the forex trading principles that exist in practice. To give a better idea of ??good business opportunities, we proceed as one of the most famous situations. (For frequently asked questions about cash transactions, see Common Questions on Cash Transfers.) A Breakdown of the Forex Carry Trade. Currency trading is the purchase of foreign currency at a low interest rate by a trader and the purchase of foreign currency at high interest rates. In other words, you must borrow at a low rate, then borrow at a higher rate. The difference is between the two operators that are using the strategy. When trade is very beneficial, a small difference between two proportions is that trade is quite profitable. With the change in the interest rate, investors will also have a high value when the cash flow to money becomes a high value. The examples can be exported to the reality of the yen. In 1999, Japan found its interest rate almost zero.

At low rates, investors will ask for a huge Japanese yen. At that time I borrowed around US $ 4.5 million to buy productive items and coupons in US Treasury bonds. UU Because the Japanese interest rate is still essentially zero, the investor will not save anything from the yen loans, which will allow him to get the maximum return on his US Treasury bonds. UU But, with leverage, you can increase your performance. Published on April 06,2018 by Jason M. Simon.


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