Forex How serious do you take fundamental analysis?

[Kingstone]

Forex traders are usually a step ahead with the fundamental analysis or news that predicts price actions. This news is based on the development of many happenings in a country's economic growth like the inflation and deflation rates, unemployment, and how the government tends to print more money to cover the losses via banks. When noticing that a certain currency will pump, how do you react? Will you trust that it is going to be 100 percent real and neglect all your trading strategies to follow the forecast to the latter?
Firstly these analysts often say one thing in common than this is just a forecast and it is based according to their analyses. Hence, any trader that is going to flow the analysis and news forecast should make more research and trade with care.

This has gotten me to wonder if they are actually saying the truth or just shying away from telling how the market will be. The recent gold analysis got me intrigued. It was stated that gold XAUUSD will rise to 1825 after it has been selling for weeks. It was even stated that it may hit 1830. Because I have been losing lots of money trading gold, I failed to look at it.

Surprisingly, it went in that direction and I could do nothing other than biting my fingers.

So how seriously do you take fundamental analysis?

 

[btaliat]

I don't really know a trader that doesn't rely on fundamental or technical analysis will survive the market. It is always competitive and one needs to always find a reliable and dependable analysis to depend on while making a trade to either minimize loss or maximize profits.

 

[Victorial]

That was quite a big miss. I believe if you have taken the trade, you will be in massive profits especially if you set your take profit at the spot with just 0.02 lot size. Trading gold is volatile and I understand why you are scared. You could have checked it at least with your technical analysis to see where you buy and where to sell. There are times that the news will not be effective and you will suffer losses when you go along with the trade. I gave fallen a victim to that before. You just never know which one will go well or not

 

[Dita Walczak]

The fundamental news effect occurs when the market is volatile. Therefore, in order to trade in the market, I have to trade following money management and market sentiment.

 

[cadelynch]

I take it quite seriously because it gives the reasons behind the technical analysis outcomes. Combining both technical analysis and fundamental analysis shows a bigger, clearer picture of how the market has been behaving and to some extent makes it easier to make trading decisions as we get to know why the price bounced off a support level and whether a certain resistance level was worth giving attention to.

 

[JoeSeki]

To be honest, I’m always serious about fundamental analysis. Studying the social, economic and political factors that may affect currency’s prices interest me. However, I used to find technical analysis a little difficult but I’ve learnt it with practice. I think to get more profits, it’s always preferable that a trader gives equal importance to both types of analysis.

 

[Chlamys]

Fundamental analysis can be very helpful for traders to predict the future of the market, especially if you are a long-term trader. Fundamental traders focus on a particular pair and develop an understanding for the pair, which can help become familiar with trading strategies that could work. However, it is not definite and the acquired analysis may not work for other pairs. Paired with technical analysis, however, fundamental analysis can help traders fetch higher returns.

 

[Deleted member 28127]

They are helpful both for short-term or medium-term or even long-term traders because any trader needs such calculation even duration is long or short he is in need for such changes.

 

[Good-Guy]

I have been a cryptocurrency trader and I have never traded in forex market. However, I must say that studying the basics of anything is actually very crucial before you invest your funds. A person who does not analyze the fundamental aspects of any kind of business, then such investor will most likely suffer from loss. I think this rule applies for all kinds of businesses, not just online trading. I think this is why I always recommend people to get experience by being in the company of experienced traders who have been in the field for a long time, as they are experts who have studied online trading.

You may also like to learn how to trade online by watching tutorials on Youtube and join various platforms that would allow you to learn. Learn the basics first before you get into technical aspects of forex trading. This is because it might not be possible for a newbie to get into technical details about how the forex system works as a beginner. The same goes for cryptocurrency trading. I have been trying to learn, but since cryptocurrency trading is quite tricky, I am still having a hard time how it works.

 

[Torsade]

I think fundamental analysis plays a huge role in deciding which way the trend for a certain currency pair will move. In fundamental analysis, traders check the impact of political, social, and economic factors on the relative value of a currency. After identifying the primary factors that would influence the intrinsic value of a currency, traders decide their next trading moves.

 

[Nimrod]

With technical analysis, you can determine the price action and predict its future movements. With fundamental analysis, you can identify the primary drivers of the currency movements to make informed trading decisions. And when you combine both these types of analysis, you can obtain clearer information and hence, can make better trading decisions.

 

[Shrubbery]

I prefer doing both technical and fundamental analysis before trading a certain currency pair. Many traders rely on only technical analysis and miss the fundamental one. But I think to get the best results it’s preferable to combine both types of analysis.

 

[destinyrim]

I’m a kind of a trader who is never satisfied with the superficial knowledge that trading indicators give. I am always curious to know how the market moves and it is only through fundamental analysis that I get answers to all my ‘Whys’. Every morning I check economic calendars to stay updated on important releases that may impact the market.

 

[CrozeGrog]

Fundamental analysis is extremely important in forex trading because it is one of the factors that affect the value of currencies. If a major political, economic or social event occurs in a certain country, its impact would definitely be felt on its currency, and in case, I’m trading it, then it’ll impact my trade. So, if I can get some credible information about the movement of a certain currency from news or the internet, then I might stay ahead in the game.