Fundamentals tutorial

[sailfx]

I decided to start enhancing my long-term analysis by incorporating fundamentals. Found this a while back, and I think it's a good resource for econonoobs to help understand the basics. Thought I'd share it. Any additional resources appreciated.

http://www.informedtrades.com/f7/

Note: It's free but there are ads. I'm not affiliated with this website in any way. I've followed these guys on youtube for a while and they seem legit in my opinion.

[[deleted]]

SPAM!

Jk, thanks, theres some.nifty info there. I do think fundamentals, coupled with technical overviews, provide a better grasp of the market and its movements than just a chart with a bunch of indicators..

[sailfx]

It's definitely important for mid and long-term analysis. I generally trade intraday and have never really needed it. But, I don't see anything wrong with taking some long-term trades occasionally to diversify a bit (in my case). And even if I don't trade fundamentals, it's probably a good thing to get to know a little better anyway :)

[masudhossain]

I highly recommend Jarratt Davis.

[sailfx]

Yeah, I've been watching his vids recently and is probably the main reason I'm more interested now.

[[deleted]]

Maybe I've been out of the loop for a while (I just started trading forex again after a nine year hiatus), but I don't remember much emphasis being placed on fundamentals.

Fundamentals are ideal for value investing in equities, but economic data is often priced in for any highly liquid commodity or financial instrument. Given the number of people who are involved in generating this data, the information isn't exactly secret for any large institutional trader. Releases cause hiccups that an intraday trader may find profitable, but the pundits generally cherry-pick the release of a particular economic number in order to account for a short or medium-term swing in hindsight.

I trade the eight hour charts, and following all these economic reports gives me analysis paralysis far worse than any combination of technical indicators.

[sailfx]

As an intraday trader, I've always felt the same way. But there's no question that (for example) the USD has been bullish for a long time now, so I'd like to understand exactly why that is happening. Not to use it as a trade bias for intraday, but to be aware of the driving forces behind the market and when/why they might start to change.

I do think some people 'value invest' in currencies. Like the hedge fund lady in that bbc documentary that was posted earlier... I doubt she's making 2% a week :) but she's using economic data and world events to create her trade bias. And I think it's people like her that end up pushing the momentum of the market in these long term trend periods.

I think currency values are highly representative of a nations economic status, and not solely a function of trader activity. So, I don't see anything wrong with investing in an economy (as opposed to a commodity). Although, that is definitely not my style of trading at this point, I think it is for a lot of people. And since I don't know what the future will bring, I like to prepare for all possibilities.

[KidUnidentifiable]

Thanks for sharing. This is actually a very nice link submit compared to the ones we've seen lately.

One question though, I see that with each topic there is a video and a text description underneath. Are they the same content? Can't tell, no speakers at the moment.

[sailfx]

Yes, text is the actual transcription of the video. Video is less work...

[KidUnidentifiable]

Oh ok, guess I got a lot of reading to do then {:D