Traders who may have experience with trading stocks and shares will probably be wise to trading with fundamentals and I could go on and on about gross domestic profits (GDP) or the consumer price index (CPI) but for me the fundamentals are not an area of analysis I like to use. So I will skip this unnecessary information to avoid confusion.
Basically, traders tend to fall into two different groups, traders that use the fundamentals (news) to make trade decisions and traders who use technical analysis (the charts) to make a trade decision.
I fall into the technical side of things and consider myself to be a pure technical trader, relying on the information I can see coming off my charts to make trade decisions. I believe the news gets factored into the price on the charts we see anyway and so to avoid over complicating the issue “I trade what I see, not what I think”
Remember too much information can really confuse and paralyse us from making clear and correct decisions.
The only news event I consider to be dangerous to place trades during is the Non Farm Payroll. This comes out on the first Friday of each month usually. It’s a very volatile time to trade for the major pairs and in my view a complete lottery.
If you are just starting out, I would recommend to purely focus on the charts and learning how to read price action and mark the key levels correctly. The news is not something we need to bother with.
Module 1: The Basics
- Unit 1: What is the Forex?
- Unit 2: Forex terminology
- Unit 3: Fundamentals v technical analysis
- Unit 4: What is price action?
Module 2: Market Analysis
- Unit 1: How to analyse the markets
- Unit 2: What types of trades can we use?
- Unit 3: Marking support and resistance levels
- Unit 4: Time frames/best times to trade
Module 3: Price Action Setups
- Unit 1: Price action setups introduction
- Unit 2: Pin bar
- Unit 3: Engulfing bar
- Unit 4: Inside bar
- Unit 5: Sandwich combo setup
Module 4: Chart Setup
Module 5: Trade Management
- Unit 1: Trade plan
Module 6: Trade Psychology
- Unit 1: Psychology introduction
Module 7: Continue your learning
- Unit 1: What next?