BeginnerEarly Stages for Beginners8 Topics
Forex Terminology11 Topics
- Major and Minor Currency Pairs
- Basic Forex Terminology
- Pips & Ticks
- The Broker & The Spread
- What is a Lot?
- Stop Loss & Take Profit
- Margin & Leverage
- Retracement & Reversal
- When Can I Trade Forex? Sessions - Market Open and Close
- 3 Types of Analysis (Technical, Fundamental, Sentiment)
- 3 Ways a Market Can Go (Up, Down, Sideways)
Margin & Leverage2 Topics
IntermediateIdentifying Scams2 Topics
Brokers for Beginners5 Topics
Technical Analysis13 Topics
- Types of Charts
- Understanding Japanese Candlesticks
- Candlestick Patterns For Beginners
- Single, Double & Triple Candlestick Patterns
- Support and Resistance
- Confluences w/ Candlesticks & Support & Resistance
- Counter Trend Trading/ Counter Trend Lines
- Moving Average
- Top-Down Analysis
- Consolidation Trading (Breakout, Retest, Continuation)
AdvancedUsing Indicators6 Topics
Technical Analysis (Part 2)8 Topics
Market Structure5 Topics
Fundamental Analysis9 Topics
CompletionRisk Management for Beginners8 Topics
Psychology for Beginners7 Topics
Personal Psychology Questions2 Topics
Why Fundamentals Are Important
YO! So pay attention. Don’t skip this section. I don’t care what any of the Lambo bros tell you. Fundamentals are JUST as important as technicals. I’m tired of people online saying: “Only technicals matter. Who cares about fundamentals? They’re already factored into the price.” And while a part of fundamentals may be factored into price already before the news even releases, you have to treat Fundamental Analysis with the same respect you do technicals. Remember that. Or a news release will wipe you clean out!
Have you ever thought of how we get our news? I’m talking like CNN, FOX type news. There are many different types of news outlets. You can hear news on the radio, see it on TV, read it in the newspaper, or find it on social media these days. News is something that we are exposed to on a regular basis.
Just like in everyday life, there is news in the foreign exchange market too.
Fundamentals can cause SUPER FAST movement in the markets in a split second. I’m talking Usain Bolt fast. They’re able to generate such large amounts of liquidity within the market in a short period of time by government officials simply speaking about the current state of the economy and upcoming changes to the economy. If the United States unemployment rate is getting worse, the US Dollar will be heavily affected in a negative way; specifically 8:30 on the first of every Friday when the actual news releases (Non-Farm Payroll). Also, if you have an exact bias for the pair you’re trading, that can be completely altered based on what news event is about to be released. UNPREDICTABILITY RULES THE MARKET when fundamentals are released.
NOTE: Sometimes, what they’re about to announce is clear as day, but that doesn’t mean the market will do exactly what it’s going to do. For example: If Interest Rates rise and it strengthens GBP but you figured GBP would rise based on rumors via various news outlets and what the Bank of England has been hinting at, that’s still not a guarantee that price will shoot up. You could enter for a buy, and the price can DROP 50-70 pips, wicking everybody out, before skyrocketing!
OH! And keep in your mind, the spread will widen. GO FIGURE! Pairs that are used to seeing spreads of 3 and 5, may see spreads of 16 and 21 when fundamentals are announced. Some, even higher.
Be very careful trading during news.