I have a problem acquiring information on fundamentals, understanding it all, and then digesting it and creating a perspective on how to trade certain pairs. There is so much fundamental information coming at me at once, that I am unsure how to evaluate it and create a market view based on it by which I can plan my trading.
I have been a technical trader up until now, and I realize that technical signals are very good when it comes to setting up entries, but not good when it comes to evaluating how long a trend will last. I feel a deep understanding of news and how it effects the relative strength of pairs is needed to understand the strength of a trend by which one is likely to profit on.
So the problem is threefold
1. Getting the right information on fundamentals
- What websites/other publications should I refer to?
- Which news should I focus on?
- What do the numbers in the released reports mean?
- How much does what analysts say matter?
- How much does other world news matter?
- How do commodities and other instruments effect the various currency pairs?
2. Understanding the information
- How does this news effect the strength of a currency? Does this effect change depending on other factors?
- What about overall supply and demand is this news saying?
- What are the short, medium, and long term effects of this news?
- What takes priority? What about conflicting strength and weakness from different reports?
3. Digesting this information, synthesizing all of it, and creating a market view by which I have a fluid understanding of the relative strengths of currencies
- When do fundamentals overall indicate a probability of a new trend forming?
- When do fundamentals overall indicate a probability of a trend reversing?
- When do fundamentals overall indicate a probability of a trend strengthening/weakening?
Any articles, websites, books, and of course your own comments will be helpful. Thanks!
I have been a technical trader up until now, and I realize that technical signals are very good when it comes to setting up entries, but not good when it comes to evaluating how long a trend will last. I feel a deep understanding of news and how it effects the relative strength of pairs is needed to understand the strength of a trend by which one is likely to profit on.
So the problem is threefold
1. Getting the right information on fundamentals
- What websites/other publications should I refer to?
- Which news should I focus on?
- What do the numbers in the released reports mean?
- How much does what analysts say matter?
- How much does other world news matter?
- How do commodities and other instruments effect the various currency pairs?
2. Understanding the information
- How does this news effect the strength of a currency? Does this effect change depending on other factors?
- What about overall supply and demand is this news saying?
- What are the short, medium, and long term effects of this news?
- What takes priority? What about conflicting strength and weakness from different reports?
3. Digesting this information, synthesizing all of it, and creating a market view by which I have a fluid understanding of the relative strengths of currencies
- When do fundamentals overall indicate a probability of a new trend forming?
- When do fundamentals overall indicate a probability of a trend reversing?
- When do fundamentals overall indicate a probability of a trend strengthening/weakening?
Any articles, websites, books, and of course your own comments will be helpful. Thanks!