Analyzing what you do was always important, it helped with finding out what you done wrong and right, where are your weak points, and where are your strong points. But no matter what, many people still underestimated analysis, and this drives them wrong way. But… I hope you’re not one of them? What I will tell you about today, is about the importance of Forex fundamental analysis.
Don’t get me wrong, I don’t wanna teach you, but people, who are not into the world they’re working in really exist. Think about where trading without Forex fundamental analysis can get you. How can you trade if you don’t know WHAT you’re trading, what are the economic trends and you can’t guess what will happen next in the financial world. Ok, so what’s Forex fundamental analysis is about?
Forex Fundamental Analysis Helps to Trade More Effective
If you’re not following news from market, you don’t know what is upcoming in the world, and the things can be changing with flashing speed. To trade currencies more effectively, you have to analyze not only the chart but also news from markets and Forex fundamental data, in order to see what waves are going to form new trends – they can last for long, and you can have an extra win knowing it (or, in other way, an extra lose don’t knowing it). There are some figures, which are extra significant for Forex fundamental analysis and can help you much with analyzing, like interest rate (it really forms the currency price most of the time), employment situation (can provide the lower or higher interest rate, which, as you already know is important for currency price and makes the weather to Forex fundamental analysis), trade balance and budget (Trade Balance deficit obviously provides a lower currency price), durable goods and retail sales (the real sign of the consumer high needs, which is really important factor in Forex fundamental analysis).
Sounds scary, yeah. But what you really need is a daily economic calendar to keep mind on. When you see the events that can provide the market changes, just watch them and keep your hand on pulse. If you know the indicator – it’s gonna be alright. Keep in mind, that news move the market quickly – sometimes neglecting the Forex fundamental analysis just for few days can bring the losses for you.
Forex Calendar
As I already wrote, it is important to know about upcoming news, their possible impact, forecast and estimated result. A good and free calendar can be found on the website Forexfactory.com.
Follow the link to take a closer look to their news calendar: Forex Calendar @ Forex Factory (in new tab)
There are also professional services like Reuters and Bloomberg what offer news feeds specially for currency traders.
Disadvantage from these paid services is that they are costly and from this reason not really a solution for individual traders.
If you are looking for high quality solution which displays all required foreign exchange trading news directly on your chart, download FX Pulse.
FX Pulse uses push technology, can be integrated into your Metatrader platform and gives you all information in real time. Best of all, FX Pulse is completely free.
