Forex Fundamental Analysis is often a scary subject for Forex traders and let's be honest, it is easier looking at some technical indicators, moving average crosses, or Fibonacci retracements instead of "reading between the lines" on Bernanke's 22- minutes speech and make split- second trading decisions. However the same could be mentioned about Technical Analysis methods such as the Elliot Wave theory or the notorious Neural Network based trading, and the conclusion is that in order to master either Fundamental or Technical Analysis, it would require investments of both time and efforts.
And That's why FundamentalForexOutlook. com was made, its purpose is to make the tricky task of forex fundamental analysis manageable for those average Forex trader, by giving you the suitable tools such as: breaking news, commentaries, historical charts, and fundamental scores at your fingertips, helping you make the proper trading decisions.
Just Before we dive into the deep end, let's simply take a minute to determine the distinctions between Forex News Trading and Forex Fundamental Analysis, mainly because for lots of individuals, they're one and the same, but that can't be further from the truth. Here are a few important differences:
1. News trading in a nutshell is trading based on surprises, it may or may not have anything to do with fundamental analysis, as it is generally based on the market perception and psychology by judging the forecast/ actual releases at that time. But Forex Fundamental Analysis accounts for the complete outlook of specific currency depending on its economic indicators( such as GDP, CPI, PMI, Trade Balance, etc.), monetary policy, and other breaking news that strikes the longer- term value of the currency, i. e. Outlook.
2. One More interesting difference between News Trading and Forex Fundamental Analysis is that News traders don't often look at prior releases except there are significant changes, however for fundamental analysts, prior releases are starting factors of comparison, and a better than prior release number is often considered good, in spite of the news release forecast. Of course this could present some contradiction with Forex news trading, but keep in mind fundamental outlook is for the long- term; think of it as gravity, it's always there. Market may be driven by other forces briefly, but it will eventually fall back in the direction of fundamentals.
3. Fundamental Analysis does not change frequently, and unlike news trading where the market could become volatile immediately aftera news release, fundamental outlook remains unaffected( mostly) unless there is considerable evidence both in market sentiment and concrete economic data. The general rule is unless there are good reasons to change our view, we don't.
In conclusion, by understanding the basic difference between Forex news trading and Forex Fundamental Analysis and by by using FundamentalForexOutlook. com, it will help you stay on the correct side of the market by giving you the tools you will need. You'll be able to trade foreign currencies with powerful Outlook Score against currencies with vulnerable scores, especially from a longer- term perspective. The benefit of the Outlook Score is each time a foreign currency is going against it, it mostly will come back, giving you a golden opportunity to place your longer- term trade according to fundamental trend.
For more information on Currency Outlook, please visit us at Forex Fundamental Analysis