Fundamental Analysis

moonchild

VIP Contributor
Fundamental analysis deals with making trade decisions based on news or any type of events that is not natural to the market and also makes the market trend to change into some other direction before the market bounces back to it's former direction, to understand fundamental analysis you can read some blog posts from Investopedia and also Babypips, some prominent events that are traded with fundamental analysis are the Non Farm Payroll event that happens every month and it is released by the US government to report about unemployment figures.

You should also note that as a retail trader is hard to trade using fundamental analysis because you have to monitoring the news and most of the times you can not predict whether the move is going to be positive or negative, market makers and hedge funds are the ones that normally trade with fundamental analysis because they have an insider in newsrooms that tell them the outcome of news before the general public, there is a south African trader, Ref Wayne, that I do watch his stuffs and he is majorly specialized in fundamental trading, he uses different strategies to trade news, but I think it is not sustainable long time for a retail trader
 

Suba

Moderator
Staff member
In my opinion, fundamental analysis really needs to be understood and mastered by every forex trader. Fundamentals focus on the state of a country's economy that will affect trading activities, such as gross domestic product, interest rates, employment and international manufacturing. These factors will greatly affect the value of a country's currency. Often traders use fundamental analysis to make long-term predictions because changes or economic turmoil in a country often do not have an immediate impact, but the impact will have an effect at least 1 hour after the news is released. In addition to economic factors that affect fundamental analysis, there are also factors that also have an influence, such as social and political factors, there are also other factors that must be considered by forex traders, namely external factors which often make surprising fluctuations.
 

Dita Walczak

Verified member
If you pass more and more time with the market, you can possibly build up a strong and positive mindset. Form a group for trading because it will help you gain more knowledge. Besides developing a trading-genial mindset, traders should keep earning more and more knowledge. Eurotrader’s all facilities will cheer up your mind for trading.
 

Mary Frederick

Active member
Forex can be traded both as a part-time and professional trader. Full time traders invest their whole day in trading. On the other hand, if you want to trade risk-freely, you can go for day trading. Eurotrader provides smooth trading platform, narrow trading spread, high leverage and high security of funding.
 

FXOchartist

Verified member
Fundamental analysis is one type analysis in forex trading market. How to analyze the market based fundamental analysis need knowledge to understanding economic in global economic and making conclusion impact to currency, this is not simple task for some traders so many trader choose technical analysis because simplicity.

Fundamental news like CPI, PPI, NFP, Interest rate, FOMC included high impact news in fundamental analysis. We can trade using FXOpen broker to get profit from forex market using fundamental analysis.
 
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