Fundamental analysis in Forex trading or any other forms of financial instruments refer to the study of the core underlying elements that influence the economy of a particular entity. It is a method of study that attempts to predict price action and market trends by analyzing economic indicators, government policy and societal factors (to name just a few elements) within a business cycle framework. As with most analysis in Forex trading, the goal is to derive a forecast and profit from future price movements. Fundamentalists do not heed the advice of the random walkers and believe that markets are weak-form efficient. By believing that prices do not accurately reflect all available information, fundamental analysts in Forex trading look to capitalize on perceived price discrepancies.

There is a tendency to pigeonhole traders into two distinct schools of market analysis – fundamental and technical. Indeed, the first question posed to you after you tell someone that you are a trader is generally “Are you a technician or a fundamentalist in Forex trading?” The reality is that it has become increasingly difficult to be a purist of either persuasion. Fundamentalists in Forex trading need to keep an eye on the various signals derived from the price action on charts, while few technicians can afford to completely ignore impending economic data, critical political decisions or the myriad of societal issues that influence prices.

Bearing in mind that the financial underpinnings of any country, trading bloc or multinational industry takes into account many factors, including social, political and economic influences, staying on top of an extremely fluid fundamental picture can be challenging. At the same time, you’ll find that your knowledge and understanding of a dynamic global market will increase immeasurably as you delve further and further into the complexities and subtleties of the fundamentals of the markets.

Conclusion

Fundamental analysis in Forex trading can be valuable, but it should be approached with caution. If you are reading research written by a sell-side analyst, it is important to be familiar with the analyst behind the report. We all have personal biases, and every analyst has some sort of bias. There is nothing wrong with this, and the research can still be of great value. Learn what the ratings mean and the track record of an analyst before jumping off the deep end. Corporate statements and press releases offer good information, but they should be read with a healthy degree of skepticism to separate the facts from the spin. Investors should become skilled readers to weed out the important information and ignore the hype.

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I was about to go to bed, after long hours on warcrafting since morning. It was these 5 Steps to Forex Trading Mastery that I would like to share with you before I slipped my mind.

Use to read dozens of trading books from fundamentals to technical analysis. Tried numerous Forex trading indicators and strategies or attending courses that costs me $3000 for 2 days, and yet I was still in the red or break-even (if I am lucky) by the end of the month.

Recalling back, there are a 3 main reasons why I used to end up this way.

1) I was just searching for the Holy Grail in Forex trading, which does not exist in this world.

2) Lack of in-depth understanding in trading psychology, this is because most of the gurus here did not go in-depth on trading psychology.

3) Too biases on a single direction in the market

After numerous trial and errors, I have personally come up with 5 easy steps to Forex Trading Mastery (If you follow closely)

• 1) Do not be too biases on a single direction in the Forex market, because the situation may change (depending on the big boys). You got to be open minded in the midst of your trading decisions.
• 2) Keep a record of your trades. It is not just trades you have entered or exited. You need to keep track of your feelings and emotions. Try to find what triggers you to enter that particular position; peer pressure? Fear of not full maximizing your profits? Afraid to cut losses?
• 3) As there is no such things like Forex Holy Grail strategies, you need to settle on a strategy that suits your personality and lifestyle. In this way, you will be more focus on the Forex market, than concern about your fanciful strategies.
• 4) Observe your own thoughts and emotions during your trading sessions and keep a record. This will help you to eliminate your fear and greed.
• 5) Develop patience. This will help to filter unnecessary early/late entry to the market.

I hope you enjoy my short article above. Good Night!

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A friend of mine had send me this video and after listening to it, i decided to post it here to share with you.  

Susan Boyle’s performance of I Dreamed a Dream from the muscial Les Miserables was so touching, that make my eyes teary. Her voice is like an angel that touches your heart. Perhaps, this is what they call touch by an angel.

Recently, I have received many emails asking me on how to get started in Forex trading. Therefore, I have decided to write a short posts on how to get started in Forex trading, and I hope that the below information I provided is enough for you to kick start your Forex practice.

Step 1: “Subscribe to Internet Service”

Yes this may sound dumb, however, I have know of some new traders who thought that they can trade online without subscribing to the internet!! So getting connected with your local internet service provider is the first step to start Forex trading.

Step 2: “Open a Demo Account”

Many brokerage houses offers demo trading account and it’s free. Demo account is design to help new/experience forex traders make dummy bets in a trading real environment. Yes, did I say experience forex traders also used demo trading account at times? Yes, demo account will be one of your best friends your forex trading, and it is better to lose your virtual money than real ones.

In case your preferred broker does not offer any charting service, you can download free Forex charting here.

Sept 3: “Practice, Practice, Practice”

Before, you start doing any virtual trades, read up some books or attend courses on Forex trading, and pick on a strategy that suits your lifestyle. It is important that you treat your demo trading as real trading (some people may have difficulties doing that and you need to remember that losing virtual money is better than real ones).

You will need to record all the virtual trades you have made (including profit and losses). Take this time of virtual practice to know more about your own personality in Forex trading.

Step 4: “Know Thyself, Know Thy Enemy”

Forex trading is about knowing your own personality and it is very important to build a series of good habits from the beginning. If you find bad habits surfacing, eliminate it immediately. The below are a lists of common bad habits;

-Unwilling to cut losses immediately

-Mental stop loss

-Overtrading your lot size

-Taking losses too hard

-Trading for revenge

 Step 5: “Your Journey Begins”

After a period of demo trading and you have attaint certain confident level (consistency in virtual profits). You may want to test your skill in the Forex market with real money. It is simple; just request an application form from your broker and they will be more than willing to assist you in opening a live account.

I hope you enjoy this short article I have written to help some of those who want to get started but don’t know how.

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1:30 a.m. in the Monday morning, and I have got this idea to write this article on Women Vs Men in Online Trading. This topic has been discussed among my friends many years ago, and I would like to share with you on my personal thoughts in this subject.

With the current exponential growth in online trading, there are many people are jumping into the trading bandwagon. However the ratios of women traders to male traders are still relatively small.

In a Harris poll conducted for e-broker Charles Schwab a few years ago. Twice as many women (48 percent) as men (24 percent) indicated “investing is scary for me.”

From my personal experience, generally, men tends to be overconfident in their own abilities; finance, sports, drinking, online trading, driving etc. From studies, men are more prone to taking risks as compared with women. This would suggest why more men are caught drink driving than women. J

During dating process, most of the women would usually “play it safe”, and they would grilled their potential boyfriend or husband-to-be for any hints of defects, before taking the “risk” to be in a relationship with the other party.

As women are more risk adverse, this is what makes them a better online trader, waiting patiently for all the indicators to be in line before taking up a position in the market.

In the risk-adverse department, a woman seems to process great advantage as compared to men. On the other hand, studies have shown that women are more prone to feeling guilty when they lose money in the market. This may hinder their trading progress as I have already discussed in my previous post that in order to have the winning psychology in trading, individual most not get too affected by their previous losses.

There are both great male and female traders around, and I have personally found that their success in online trading is usually based on balanced traits in them. They are neither too cautious nor too aggressive, and too emotional nor emotionless.

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