Forex Trading Fundamental Analysis Masterclass – Part 11
“Successful trading depends on the 3M`s – Mind, Method and Money. Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets. Each trader needs to have a method for choosing specific stocks, options or futures as well as firm rules for pulling the trigger – deciding when to buy and sell. Money refers to how you manage your trading capital.” – Alexander Elder
When it comes to making Forex trades, having the right information can be a decisive factor. While it can be difficult to know where to look, with so many sources of (often conflicting) news, data, and analysis available online, it is information that causes prices to change, so you can’t ignore it.
What you need to know is that news – such as economic reports, staffing changes at central banks, and interest rate changes – can move fundamentals, and fundamentals are what move currency pairs.
When you know why the price is moving in a certain way, it makes it a lot easier to make profitable trades. The key to success when using fundamentals to trade forex is to be able to see beyond the ‘noise’ of Forex data and news to pick out what is really important to traders at the current time, and make informed trading decisions based on these.
Where to find market information:
“It all comes down to interest rates. As an investor, all you’re doing is putting up a lump-sum payment for a future cash flow.” Ray Dalio
There are many different places where you can find market news and data that is relevant to the forex market. Perhaps the most obvious place is the internet, as this provides a huge multitude of options, with information available to you instantly on virtually anything that you require. However, there is also useful information to be gleaned from the television, via dedicated networks such as Bloomberg TV as well as mainstream broadcasters, and print media such as the Financial Times, and while this may not be as lightning-quick as the internet, the fact that this information is professionally curated makes it in many ways more reliable and useful.
Although there are a lot of financial news websites out there, the big names – namely Reuters, Bloomberg, the Wall Street Journal, Marketwatch.com, and the Financial Times – are generally the best. These firms provide coverage of the markets around-the-clock, with regular updates on all the major news that you need to keep on top of such as central bank announcements and economic report releases. These major players have top financial analysts and industry insiders working for them, providing analysis and insight beyond the raw data.
List of top news and financial trading websites:
TV can also be a useful source of information, particularly because of its real-time nature and the fact that you can have it on in the background while you are doing other things. Financial TV networks exist 24 hours a day, seven days a week giving you the latest info on all of the world’s financial markets. The most useful ones for Forex traders are Bloomberg TV, and Fox Business, although other networks such as the BBC, CNBC, MSNBC, and CNN can also be useful.
Finally, newsfeeds in your Forex trading platform can provide you with a source of up-to-date market news that is both relevant and within easy reach. Many brokers provide newsfeeds free of charge with their platforms, although you may need to pay a little extra to receive the best quality or most specialised newsfeeds – such as those available on Bloomberg Terminals.
“I think it was a long step forward in my trading education when I realised at last that when old Mr. Partridge kept on telling other customers, “Well, you know this is a bull market!” he really meant to tell them that the big money was not in the individual fluctuations but in the main movements-that is, not in reading the tape but in sizing up the entire market and its trend.” – Jesse Livermore
Other articles in this series:
Forex Trading Fundamental Analysis Masterclass Part 1
Forex Trading Fundamental Analysis Masterclass Part 2
Forex Trading Fundamental Analysis Masterclass Part 3
Forex Trading Fundamental Analysis Masterclass Part 4
Forex Trading Fundamental Analysis Masterclass Part 5
Forex Trading Fundamental Analysis Masterclass Part 6
Forex Trading Fundamental Analysis Masterclass Part 7
Forex Trading Fundamental Analysis Masterclass Part 8
Forex Trading Fundamental Analysis Masterclass Part 9
Forex Trading Fundamental Analysis Masterclass Part 10
Forex Trading Fundamental Analysis Masterclass Part 11
Forex Trading Fundamental Analysis Masterclass Part 12
Forex Trading Fundamental Analysis Masterclass Part 13
Forex Trading Fundamental Analysis Masterclass Part 14
Forex Trading Fundamental Analysis Masterclass Part 15
José Ricaurte Jaén is a professional trader and Guest Editor / community manager for tradersdna and its forum. With a Project Management Certification from FSU – Panama, José develops regularly in-house automated strategies for active traders and “know how” practices to maximize algo-trading opportunities. José’s background experience is in trading and investing, international management, marketing / communications, web, publishing and content working in initiatives with financial companies and non-profit organizations.
He has been working as senior Sales Trader of Guardian Trust FX, where he creates and manages multiple trading strategies for private and institutional investors. He worked also with FXStreet, FXDD Malta, ILQ, Saxo Bank, Markets.com and AVA FX as money manager and introducing broker.
Recently José Ricaurte has been creating, and co-managing a new trading academy in #LATAM.
During 2008 and 2012, he managed web / online marketing global plan of action for broker dealers in Panama. He created unique content and trading ideas for regional newspaper like Capital Financiero (Panamá), La República (Costa Rica), Sala de Inversión América (Latinoamérica) and co-developed financial TV segments with Capital TV.
He is a guest lecturer at Universidad Latina and Universidad Interamericana de Panamá an active speaker in conferences and other educational events and workshops in the region. José Ricaurte worked and collaborated with people such as Dustin Pass, Tom Flora, Orion Trust Services (Belize) and Principia Financial Group.
