We established that in every trading plan the fundamentals of currencies should take the primary seat and we use technicals as a co-driver to boost our probability model. In the following article we are going to show a way to keep on top of the Fundamental analysis and use it in your trading in essence we are going to show you fundamentals made easy.
Fundamentals are easy to keep up with, once we have caught up which what the major global economies, their actions and intentions are we simply follow their outlook from then on. As they change their view on policy for the currencies we simply note that the sentiment of that currency has either changed or remained the same. We pay attention to their statements and watch the economic data that they point to as leading data for their decisions.
Fundamentals are primary because we would not want to buy a currency that has a monetary policy which indicates weakness. If we do that we simply trade against the professional traders, the largest banks and hedge funds around the world which will surely result in losses. If we take into consideration the fundamental view of the hedge fund managers and large banks then we can trade with confidence that the currency will head in the desired direction overall.
We can keep up with fundamental news and economic data releases when we access central banks' websites and we read their official published statements, then we can head to an economic calendar which are provided through reputable forums and see the economic data releases for each currency in real time. We can always see the previous figures, the forecasted ones and at the given time the actual data that is being released. Bear in mind that just because a data comes out better it doesn't automatically mean that the given currency strengthens. It is important to analyze the whole economy of a country and not solely rely on one data release, because every economic data is linked to another which influences the big picture that is playing out.
Unfortunately it is fact that 95% of retail traders fail to turn a profit month on month in trading; one of the reasons for this comes down to the lack of understanding of the fundamentals of the market. All the brokers will offer free training on the subject of spread betting, however you will find this is technically based. The reason for this is simple; they don't want you to follow the fundamentals and be successful.
Greg Joined BOAFX Trading Signal Solutions as a technical analayst consultant and company trader in 2015. Since trading with the company he has studied the fundamental analysis education courses and boosted his and the companies profits 100%. Greg now resides with BOAFX as a trainer, consultant and full time trader.