I traded the GDP live for CAD via EUR/CAD today and was 20 pips in profit at one point then the trade went 40 pips against me because PMI came out bad for CAD.
Now CAD was also losing strength because WTI Crude was taking a beating. It missed my stop loss by like 5 pips also (Credit myself on the well placed stop).
Now why didn't I close the trade when I saw it go against me? I knew the EUR was taking a beating due to lack of demand for it (I'm currently 75 pips up on eur/usd short ) and I knew GDP was good for CAD, but ultimately I knew at this moment in time that CAD was more in demand than the EURO hence why I knew it would come back down and I closed it at break even (Not holding as I am wrapping up for the day and this Iran news could destroy the trade if positive for Oil)
Not only can you make money from fundamentals, but you can also save money from cutting losses because you know the overall fundamental picture will at some point, put your trade in the fundamental direction.
If you have watched the movie the Big short you will remember all those guys were in draw-down when they best against the housing market, but they held their trades because they understood the Fundamental
Now CAD was also losing strength because WTI Crude was taking a beating. It missed my stop loss by like 5 pips also (Credit myself on the well placed stop).
Now why didn't I close the trade when I saw it go against me? I knew the EUR was taking a beating due to lack of demand for it (I'm currently 75 pips up on eur/usd short ) and I knew GDP was good for CAD, but ultimately I knew at this moment in time that CAD was more in demand than the EURO hence why I knew it would come back down and I closed it at break even (Not holding as I am wrapping up for the day and this Iran news could destroy the trade if positive for Oil)
Not only can you make money from fundamentals, but you can also save money from cutting losses because you know the overall fundamental picture will at some point, put your trade in the fundamental direction.
If you have watched the movie the Big short you will remember all those guys were in draw-down when they best against the housing market, but they held their trades because they understood the Fundamental