Technical trading refers to the use of technical indicators on your forex platform, to try to predict price movement of a currency pair.
Fundamental trading involves the use of economic news indicators as determinants of the direction of the affected currency pairs.
On its own, technical analysis is not sufficient for a trader to be able to create a trading plan that will deliver profits consistently.
Market sentiment and market direction is a function of the economic and political news that hit the newswires. Any trading plan that does not factor in these economic indicators is doomed to fail from the outset.
Let’s take for example, that the ECB Chairman is giving his speech and is fanning the embers of inflation control, signalling rate hikes, which would send traders into a Euro buying frenzy.
The ECB Chairman and the financial institutions that constitute and control the flow of over 80% of the $4.2trillion/day forex liquidity will not care if the EURUSD just did a double top or a descending triangle (bearish signals).
As far as the ECB Chairman is concerned, his mandate is to protect the low-inflation policy of the European Central bank, and if he has to increase interest rates to do so, he will.
The institutional traders will simple buy Euros in response to gain from the immediate capital gain in the market and also to earn from the increased Euro interest rate against the US dollar.
The candles will respond by going northwards, blowing off any trade that went short on a double top technical strategy. That is how the market works.
This is why the hallmark of trading has always been:
“Trigger fundamentally, enter and exit technically”.
What makes fundamental trading so important in forex trading?
Macroeconomic news items are released by government agencies and vey important private authorities.
The news is transparent, cannot be manipulated (like company’s earnings which are susceptible to accounting fraud), and is available to ALL market participants.
The dates and times of release are made known to all currency market traders well in advance, and the news is delivered to channels accessible to all traders; usually their trading platforms via news feed services of Bloomberg, Reuters, Dow Jones News Wires and TV stations like CNNMoney and CNBC. Insider leaks are rare.
Look, if you are currently not getting the results you want from your trades or worse; if you are suffering loss after loss after loss in your trades right now, you simply CANNOT afford to put this off.
Nothing to be ashamed off I assure you, I've been there myself... so I KNOW how shitty & frustrating it can be!
Yes.. I know!
So again, believe me when I say that you simply CANNOT afford to put it off anymore because if you keep trading the way you've always been trading, it'll just be a matter of time until your entire account gets wiped out for good!
You don't want to get a Margin Call, really.
The good news however is you DON'T have to let that happen. You don't have to keep getting stopped out, stopped out... and stopped out again.
And you DON'T have to rely on expensive, useless robots & trading softwares to help you, either!
You CAN trade to win.
It's quite simple, really.
You just have to know HOW.
Go check this out right now, and see how to fix the REAL cause of why you're losing... using easy, emotion-free, step-by-step buy & sell signals in your EUR-USD trades here!
To a brand NEW you! :)
Fundamental trading involves the use of economic news indicators as determinants of the direction of the affected currency pairs.
On its own, technical analysis is not sufficient for a trader to be able to create a trading plan that will deliver profits consistently.
Market sentiment and market direction is a function of the economic and political news that hit the newswires. Any trading plan that does not factor in these economic indicators is doomed to fail from the outset.
Let’s take for example, that the ECB Chairman is giving his speech and is fanning the embers of inflation control, signalling rate hikes, which would send traders into a Euro buying frenzy.
The ECB Chairman and the financial institutions that constitute and control the flow of over 80% of the $4.2trillion/day forex liquidity will not care if the EURUSD just did a double top or a descending triangle (bearish signals).
As far as the ECB Chairman is concerned, his mandate is to protect the low-inflation policy of the European Central bank, and if he has to increase interest rates to do so, he will.
The institutional traders will simple buy Euros in response to gain from the immediate capital gain in the market and also to earn from the increased Euro interest rate against the US dollar.
The candles will respond by going northwards, blowing off any trade that went short on a double top technical strategy. That is how the market works.
This is why the hallmark of trading has always been:
“Trigger fundamentally, enter and exit technically”.
What makes fundamental trading so important in forex trading?
Macroeconomic news items are released by government agencies and vey important private authorities.
The news is transparent, cannot be manipulated (like company’s earnings which are susceptible to accounting fraud), and is available to ALL market participants.
The dates and times of release are made known to all currency market traders well in advance, and the news is delivered to channels accessible to all traders; usually their trading platforms via news feed services of Bloomberg, Reuters, Dow Jones News Wires and TV stations like CNNMoney and CNBC. Insider leaks are rare.
Look, if you are currently not getting the results you want from your trades or worse; if you are suffering loss after loss after loss in your trades right now, you simply CANNOT afford to put this off.
Nothing to be ashamed off I assure you, I've been there myself... so I KNOW how shitty & frustrating it can be!
Yes.. I know!
So again, believe me when I say that you simply CANNOT afford to put it off anymore because if you keep trading the way you've always been trading, it'll just be a matter of time until your entire account gets wiped out for good!
You don't want to get a Margin Call, really.
The good news however is you DON'T have to let that happen. You don't have to keep getting stopped out, stopped out... and stopped out again.
And you DON'T have to rely on expensive, useless robots & trading softwares to help you, either!
You CAN trade to win.
It's quite simple, really.
You just have to know HOW.
Go check this out right now, and see how to fix the REAL cause of why you're losing... using easy, emotion-free, step-by-step buy & sell signals in your EUR-USD trades here!
To a brand NEW you! :)
