Forex Fundamental Analysis is normally a daunting topic for Forex traders and let's be honest, it's much easier looking at some technical indicators, moving average crosses, or Fibonacci retracements instead of "reading between the lines" on Bernanke's 22- minutes speech and make split- second trading decisions. However the same could be said about Technical Analysis methods such as Elliot Wave theory or the infamous Neural Network based trading, and also the conclusion is that in order to master either Fundamental or Technical Analysis, it is require investments of both time and efforts.
That's Exactly why FundamentalForexOutlook. com was made, its purpose is to make the complicated task of forex fundamental analysis bearable for any ordinary Forex trader, by giving you the correct tools such as: breaking news, commentaries, historical charts, and fundamental scores at your fingertips, letting you make correct trading decisions.
Just Before we dive into the deep end, let's simply take a second to determine the distinctions between Forex News Trading and Forex Fundamental Analysis, simply because for many people, they're one and the same, but that can't be further from the truth. Here are some significant distinctions:
1. News trading in a nutshell is trading based on surprises, it may or may not have anything to do with fundamental analysis, as it is mainly based on the market perception and psychology by evaluating the forecast/ actual releases at the time. But Forex Fundamental Analysis accounts for the complete outlook of particular foreign currency based on its economical indicators( like 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 News traders don't often look at prior releases except there are major changes, but for fundamental analysts, prior releases are starting factors of comparison, and a better than prior release number is generally considered good, in spite of the news release forecast. Surely this might present some conflict with Forex news trading, but bear in mind 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 frequently, and unlike news trading where market could become volatile as soon asa news release, fundamental outlook keeps the same( most times) unless of course there are substantial facts in both market sentiment and concrete economic data. The general rule is unless there are good reasons to change our view, we don't.
To summary it, by understanding the basic distinction between Forex news trading and Forex Fundamental Analysis and by by using FundamentalForexOutlook. com, it will help you remain on the right side of the market by giving you the resources you'll need. You are able to trade currencies with powerful Outlook Score against currencies with vulnerable scores, specifically from a longer- term perspective. The advantage of the Outlook Score is the fact that each time a foreign currency is going against it, it normally will come back, providing you a golden opportunity to place your longer- term trade depending on fundamental trend.
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