All of the best traders in the world are fundamental traders - Soros, Druckmiller, Paul Tudor Jones, Bruce Kovner.
These guys all plan their trades- this is something I very rarely see being done on Forex Factory
The CFTC did a report on who are the best traders in the world - and traders that used fundamentals beat everyone (market makers, high frequency traders, & technical traders).
Typically, this can involve trading into or out of an event.
These events can be:
Central bank policy statements
Speeches by heads of state
Trade events (Brexit/NAFTA,US/China)
Important data releases
On to this we need to factor in
Geopolitical risks and interest rate bias of the central banks
So what do we look for - upcoming events - we need to prepare for them.
This is what large hedge funds do...everything is planned- when they enter and where they exit.
Additionally, I follow certain people/companies:
- Jane Foley (Fx analyst of the year)
- Charlie McElligott (closely followed on Wall Street)
- Goldman Sacks (always listen to)
When they talk the market listens.
These are the resources I look at:
Basically we need to get a handle on where an economy/sentiment is at- and then monitor it - and then wait for opportunities to occur.
Our aim - to never lose. We need to stack the odds so much in our favour we will very rarely if ever lose.
This is the main way that SMB Capital trade - and they are one of the most successful prop shops in the world
**What I find really useful is to create an event timeline - so we can monitor how currencies are performing- this alone gives us a massive edge **
**We are looking to stack our reasons for taking a trade**
**We need clear sentiment - and a level and time to trade from**
Until then we just monitor the currencies - to get in sync with sentiment
a) Always post the fundamental reasoning before posting a chart.
b) No swearing
c) Always be respectful
The most important rule of all - is buy low and sell high- and set your targets
After you have made your pips - walk away- take a break
Then re- analyse
The reason why we look at fundamentals - it cuts through the noise- it gives you a bias.