What is fundamental analysis

Thomas White
A free video tutorial from Thomas White
Forex Trader, Photographer and Instructor
4.0 instructor rating • 12 courses • 13,145 students

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Forex Trading - Advanced Fundamental Analysis

Improve your trading many times over by adding another layer of analysis to your trades

02:24:14 of on-demand video • Updated July 2016

  • Learn to interpret news
  • Understand the central banks
  • Interpret central bank actions
  • Perform Fundamental Analysis
  • Use fundamental analysis in their trading
English [Auto] The first part of the calls will be similar to my introduction of fundamentals course and it's cause it builds on it. However if you've really watched this cause Feel free to skip ahead. Nonetheless I feel that watching it again will definitely be beneficial to you. Now without further ado let's begin simply put on the Mentos is basically understanding the reasons and motives as to why the market is moving in a certain direction rather than just identifying the direction or trend that our currency is heading to. We understand the basis behind the move. We'll actually have much more confidence in our analysis and if we are able to decipher what the market has in mind then we actually have a very good chance to predict the direction that the market will hit me. For example if there's a really strong reason for the market to be scared then price will likely fall and viceversa. If there's a very good reason for the market to be confident the market will definitely be on a bullish run. So as you can tell these are actually offer you plenty of great opportunities where you can improve upon your trading. So before we begin to clarify some of the main objections that people tend to have about using fundamentals the first objection is look it has all you really need to do and applying fundamentals is irrelevant and unnecessary. Think about it this way. Technical analysis is like looking to a real view mirror does it only shows you historical information. You can be driving your car down the road just by logging your rear view mirror. Eventually your media the devastating outcome because you're not able to see all the turns and bends down in front of you. Another point to consider is that all professional traders use very specific tools like the Bloomberg terminal on a Reuters icon and the terminals are built specifically to get news and information to traders as far as efficiently as possible. The cause of a Bloomberg terminal is approximately $24000 a year. Now why would these tools that transmit news cost so much if all carriers really needed to prove it was the look at Chatz. If you think about it it's really clear about the importance of news and fundamental analysis. The next objection that people have particularly video traders is a fundamental trading is too hard and complicated to understand and unless you train in a bank or have some fancy degree in finance there's no way that you can actually learn to do this again. In this cause I will show you that fundamentals is actually simpler than technicals if you know what to look focus on and what to look for. And that objection is that old news is really priced in and it's related. Because understanding the news is actually a huge part of treating the fundamentals. And many so-called experts tend to believe of efficient market hypothesis or EMH for short him he says that all the available information is priced in. And if any moves in the market are totally random and is therefore impossible to make a consistent profit over time. Now in a very short illustration I'll demonstrate to you why this is complete nonsense and anyone who endorses this myth has actually never tried trading successfully before. Now in 2013 the Bank of Japan's QE program was actually launched to devalue the currency although the analysts had expected a very quick fall. Price did not actually fall even of the tiger. In fact it took over 15 months to actually see the results that they were looking for. And as a result there were many opportunities for traders to enter and take advantage of that news. Now there are many more examples even in shot from the trades where news isn't fully priced in immediately. This actually gives us a chance to see what's going on and then get into the market to take advantage of it does tend to be the most common reservations that people have when approaching the fundamentals. As we have shown there's really no need to be concerned about these things because what I'm going to show you next. We actually allow you to see for ourselves how simple and powerful the fundamentals really can be.