Advanced Fundamental Analysis
I don’t know about you, but when I started trading the Forex markets back in the day, I BARELY EVER focused on “the PPI”! I couldn’t care less, to be honest, and for a very long time, I never paid attention to this economic news event because I thought it was just something fancy for the traders at the bank.
Do you remember the housing market crash in 2007 and the financial crisis that followed in 2008?? Like myself, you may have been too young to understand what was going on.
BUT those who worked for Lehman Brothers, and other major banks, will never forget it.
Living in the Information Age, makes information way more accessible and it also means it is easy for anyone to put out news! Whether that information is credible or not is an entirely different story. Probably the most important thing to consider is the reliability of stories before making any investment decisions.
Remember in the Main Fundamental Forces In Forex article we said that certain fundamental events can lead to large movements in the Forex markets? And we named a few such as the GDP, unemployment rates, and even interest rates. In this article, we will look at the fundamental event known as the FOMC Meeting.
What is OPEC?
The Organization of the Petroleum Exporting Countries is an intergovernmental organization represented by 13 countries in the world. Founded on the 14th of September 1960 in Bagdad, as a way to unify and co-ordinate petroleum policies to secure fair and stable prices for producer and consumer.
Quantitative easing (QE) is a type of monetary policy adopted by central banks to stimulate a countries economy.
Central banks face the challenge of “balancing” economic growth (making sure the economy does not grow too fast or too slow) by influencing the forces of supply and demand.
Sentimental Trading isn’t so bad
Traders have been using sentiment to determine market direction for a long time now. Modern technology and an internet connection make trading sentiment just that little bit easier… a little.
3 sister approaches of trading dictate how you get into a trade and what influences your decision-making process. Technicals, Fundamentals, and the all but forgotten step-child… Sentiment.
Are you interested in using fundamentals to trade Forex but have no idea where to even start?
This article will set you on the right track by explaining 3 different approaches to trading fundamentals in Forex: News trading, interest rate approach and geopolitical trading.