Forex Fundamental Analysis
How Fundamental Forex Analysis Could Make You Alot More Financially Rewarding Virtually Immediately
Forex Fundamental Analysis can be a daunting topic for Forex traders and let's be honest, it’s much easier to look at some technical indicators, moving average crosses, or Fibonacci retracements rather than “reading between the lines” on Bernanke’s 22- minutes speech and make split- second trading decisions. But the same could be mentioned about Technical Analysis methods such as the Elliot Wave theory or the notorious Neural Network based trading, and the conclusion is that in order to master either Fundamental or Technical Analysis, it is require investments of both time and efforts…
That’s why FundamentalForexOutlook. com was made, its goal is to make the difficult task of forex fundamental analysis manageable for the ordinary Forex trader, by giving you the proper resources including: breaking news, commentaries, historical charts, and fundamental scores at your fingertips, letting you make the proper trading decisions.
Just Before we dive into the deep end, let us just take a moment to define the differences between Forex News Trading and Forex Fundamental Analysis, simply because for a lot of people, they're one and the same, but that couldn’t be further from the truth. Below are some crucial differences:
1. News trading in a nutshell is trading based on surprises, it may or may not have anything regarding fundamental analysis, as it is mainly based on the market perception and psychology by comparing the forecast/ actual releases right at that moment. But Forex Fundamental Analysis makes up about the entire outlook of certain foreign currency depending on its economical indicators( for example GDP, CPI, PMI, Trade Balance, etc…), monetary policy, and other breaking news that has an effect on the longer- term value of the currency, i. e. Outlook.
2. An Additional interesting difference between News Trading and Forex Fundamental Analysis is the fact that News traders seldom consider prior releases unless there are major revisions, but for fundamental analysts, prior releases are starting points of evaluation, and a better than prior release number is generally considered positive, in spite of the news release forecast… Surely this might present some inconsistency with Forex news trading, but just don't forget- fundamental outlook is for the long- term; think of it as gravity, it’s always there… Market may be pushed by other causes briefly, but it will eventually fall back in the direction of fundamentals.
3. Fundamental Analysis doesn't change often, and unlike news trading where the market could become volatile soon aftera news release, fundamental outlook continues the same( most times) unless of course there are substantial facts in both market sentiment and concrete economic data… The rule of thumb is unless there are reasons to change our view, we do not.
In conclusion, by understanding the basic difference between Forex news trading and Forex Fundamental Analysis and by utilizing FundamentalForexOutlook. com, it can help you remain on the correct side of the market by giving you the resources you should have. You'll be able to trade foreign currencies with powerful Outlook Score against currencies with vulnerable scores, especially from a longer- term standpoint. The benefit of the Outlook Score is whenever a foreign currency goes against it, it mostly will come back, providing you witha chance to place your longer- term trade depending on fundamental trend…