Trading News

Hello,

I have a question: When one trades only fundamentals, how do they know when a currency pair is worth trading? For example, If I was trading a the USD GBP, and the number forecasted was only higher or lower by one point, is thas sufficient enough to enter the trade to buy or sell? I've heard Tom Yeomans trades mostly when there is a change of at least 1.5 or more. Does anyone here trade only fundamentals?

Chris

The news is only tradable in relation to expectations and psychological context. It has nothing to do with fundamentals. Fundamental trading requires ultra-long-term trades, so a discrepancy in one news release is all but irrelevant.
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To trade fundamentally, you need a deep understanding of economic theory. As it applies to forex, one would apply economic principles to determine where two related countries are at in their business cycle. Then it is a simple matter of going long the one with better future prospects.<o></o>