As said in my example , normally EURUSD will make between 150 and 200 pips per week. You will have to consider that you’ll never catch top and/or bottom so if you chose to stay in market few days give market what “belongs” to market and take what “belongs” to you. What I mean by this , I’ll go for 100 pip , giving away 25 pips from top and 25 pips from bottom . Being as experienced , I do know where to enter , and my entry point will instantly create stop and limit order . So lets say we have bought EUURS at 1.3600 , my stop will be at 1.3550 and limit at 1.3700. You can notice that market got as high as 1.3813 , and my trade caught only small piece of that move. Never the less I am quite happy with what I got out of it.
As yourself I am strictly technical trader, and after 20 odd years, one will thought that my gut filling is a technical indicator in its own right. But no, after all this time, I have a discipline and I don’t get into gut felling any more
On the fundamental issue , I’ll give keyboard to my better half ( my husband is Forex trader as well ) , and he’ll give you explanation of fundamental analysis.
Hello boys and girls. I wandered what Sammy was writing last night and when she showed me, I just said “ oh please, not on Friday, not forex “
I bet you all know that feeling so far
Fundamental Analysis – when it comes to markets, it is strongly advised to avoid pure and dry definitions of anything, including analysis !
To be able to use fundamental analysis in trading, one has to make a distinction between pure data and whole deal. Data is just that – data and it is a small part of fundamental body , that can move market on a very short time frame and not always in real direction of any given instrument. I wouldn’t recommend to anyone to get involved in trading on data and / or news as you never know how the market itself will understand it and react on it. On the other hand, very good fundamental analysts can “predict” the real direction of the instrument they follow. So how do they do that?? Well, they use the combination of economical analysis, with high level of political analysis as one doesn’t go without the other. Now I’ll tell you something that you might not like, so please don’t take any offence in it, as I’m just trying to help a bit – Fundamental analysis is a huge field and open only to professionals that are educated in the field. So you can easily have PHD in Medicine or be a huge multi million dollar farmer or entrepreneur , but to figure out the direction of your favourite instrument by using fundamental analysis would be pure waste of time and very dangerous for your pocket. So what can you do?? You can do some research with some help of people present here for example , and find very good source of political and fundamental analysis done for you. If you wish to try it, we can post some insight on current situation from time to time and then you can concentrate on incoming data and figure it out for yourselves where the market will move.
E.G. – Last week , we had 2 Central Banks screaming in opposite directions ( Irish were crying that EURUSD is way too high and it’s hurting their nice country and whole German Cabinet was singing “Strong Eur We Love “)… So what can we make out of it?? Well, what do you think, whose is Louder
That’s just one small, but real example of fundamental/political analysis…Whenever currency hits new high/low there is a danger that you can throw away your technical analysis in a garbage bin and you’ll have to go to fundamental for time being. Sometimes there are no corrections, and sometimes when they technically break some important level , Central Banks will come and Intervene. ( But not this time…still Germany is a bit bigger player)
So, Fundamental Analysis is a very powerful tool, but one has to be a real expert in the field to find out what’s really happening and as you all already know, even a smallest mistake can clean your margin out. First, let’s do some real research together and start having a touch for it. However, by using it ( fundamental analysis) , you can trade bigger time frames, like daily, weekly and monthly , and with solid margin whole game gets on a much higher level.
Now, if you have some specific question, just shoot ! Otherwise, it is practically impossible to cover that question without writing several books and spend at least 5-6 years of education. Ciao
As yourself I am strictly technical trader, and after 20 odd years, one will thought that my gut filling is a technical indicator in its own right. But no, after all this time, I have a discipline and I don’t get into gut felling any more
On the fundamental issue , I’ll give keyboard to my better half ( my husband is Forex trader as well ) , and he’ll give you explanation of fundamental analysis.
Hello boys and girls. I wandered what Sammy was writing last night and when she showed me, I just said “ oh please, not on Friday, not forex “
I bet you all know that feeling so far Fundamental Analysis – when it comes to markets, it is strongly advised to avoid pure and dry definitions of anything, including analysis !
To be able to use fundamental analysis in trading, one has to make a distinction between pure data and whole deal. Data is just that – data and it is a small part of fundamental body , that can move market on a very short time frame and not always in real direction of any given instrument. I wouldn’t recommend to anyone to get involved in trading on data and / or news as you never know how the market itself will understand it and react on it. On the other hand, very good fundamental analysts can “predict” the real direction of the instrument they follow. So how do they do that?? Well, they use the combination of economical analysis, with high level of political analysis as one doesn’t go without the other. Now I’ll tell you something that you might not like, so please don’t take any offence in it, as I’m just trying to help a bit – Fundamental analysis is a huge field and open only to professionals that are educated in the field. So you can easily have PHD in Medicine or be a huge multi million dollar farmer or entrepreneur , but to figure out the direction of your favourite instrument by using fundamental analysis would be pure waste of time and very dangerous for your pocket. So what can you do?? You can do some research with some help of people present here for example , and find very good source of political and fundamental analysis done for you. If you wish to try it, we can post some insight on current situation from time to time and then you can concentrate on incoming data and figure it out for yourselves where the market will move.
E.G. – Last week , we had 2 Central Banks screaming in opposite directions ( Irish were crying that EURUSD is way too high and it’s hurting their nice country and whole German Cabinet was singing “Strong Eur We Love “)… So what can we make out of it?? Well, what do you think, whose is Louder
That’s just one small, but real example of fundamental/political analysis…Whenever currency hits new high/low there is a danger that you can throw away your technical analysis in a garbage bin and you’ll have to go to fundamental for time being. Sometimes there are no corrections, and sometimes when they technically break some important level , Central Banks will come and Intervene. ( But not this time…still Germany is a bit bigger player
)So, Fundamental Analysis is a very powerful tool, but one has to be a real expert in the field to find out what’s really happening and as you all already know, even a smallest mistake can clean your margin out. First, let’s do some real research together and start having a touch for it. However, by using it ( fundamental analysis) , you can trade bigger time frames, like daily, weekly and monthly , and with solid margin whole game gets on a much higher level.
Now, if you have some specific question, just shoot ! Otherwise, it is practically impossible to cover that question without writing several books and spend at least 5-6 years of education. Ciao
