Market fundamentals. Part 1 - Page 100
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  1. #1
    Join Date
    Jun 2013
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    Market fundamentals. Part 1

    Hi traders!

    Let's talk a bit about market fundamentals. If you want to survive and obtain ongoing success in trading, you'd better rely on fundamental principles that don't change not setups. There are bunch of setups over there, candlestick configurations and other stuff.
    But if you know principles, you will be more flexible and your success will be more solid

    What you can rely on trading markets?

    1. Imbalance creates trends, balance creates trading ranges

    Yes, exactly this sequence. Not "trend is your friend", but imbalance is your friend, because trend is an outcome, imbalance is a market condition that creates this outcome.

    "Trend-oriented" mindset often pushes traders seek for bad trade locations, when opportunity no longer exists.
    Imbalance is what you really need.

    Though trading is not a science, it has some unwritten laws beyond price action:

    First - big market participants create trends and rely on fundamental analysis. Biggest players don't rely on charts in decision making process.

    They have charts for just one thing - to know how crowd thinks and where majority will step in the markets. Big players need "hot spots" on the market (when many traders are in) to have liquidity. Their positions require liquidity and without liquidity they will be unable to accumulate enough volume for their positions.

    Imagine player with pip size equal to 100.000 USD or higher. Of course, he will need liquidity and will build his position long enough.

    That's why they monitor charts to know when traders will step in. But the reason they need to build a position is not techical analysis. Reason is fundamental analysis and analysis of real supply and demand.

    It's hard to spot "big player" but one thing will help you. Address yourself a question - who loses on the market? Who is caught in short or long positions? If you understand that long players are losing, you automatically know that bigger timeframe short player opposes them.
    Smart money players create imbalance and absorb volumes.

    Who provides liquidity, who consumes it? Like Warren Buffet said - if you find yourself near the poker table and don't know who loses money - it's you who loses it.

    2. Keep an eye on hot spots in the market

    What is a hot spot? They are: important extremums, round numbers, option barriers, in a nutshell - spots that traders are watching.
    If you know that volumes are there, big guys are also there.

    Every trend can be divided into several parts - young trend, mature trend and culmination.

    Young trend and culminational phase represent great imbalance but with one nuance - big players are building positions in young trend, and covering their positions during culmination.

    If you see "obvious" trend and see very hot market, be aware - avoid being a laggard.

    Later on I will apply some charts.

    See you and trade responsibly!

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  2. #991
    Join Date
    Aug 2013
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    Quote Originally Posted by J_C_Anderson View Post
    Market fundamentals are important even if trader prefers active intraday trading or even scalping. Each trader needs to understand the matters moving the price and the way in which different events may impact the behaviour of market participants. The simpliest way to use fundamental analysis is to avoid trading during the periods when the news are being released. It is quite easy to find information about it on numerous websites dedicated for trading. The markets could be extremely volatile during the first hour after the news, so it would be better for most of the traders, especially for newbies, to avoid trading in such periods, because the risk of being stopped out becomes very high.
    If the trader is going to become a mid-term trader or investor, the fundamental analysis becomes his main tool. The longer period of time trader stays in the position, the larger would be the number of matters influencing at it. Actually, leaving the position over the weekends, the trader exposes it to risk associated with unexpected events that may occur when the markets are closed and lead to the substantial gap which could be both either in favourable direction or in the opposite one. That is why it is necessary to evaluate all the risk to make sure that the stop is wide enough and the position is not too large to avoid huge losses.
    I absolutely agree if fundamental is very very important because any fundamental release affect to the market move. So we should learn many fundamental that make market continue or rijection when its release.

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  3. #992
    Join Date
    Oct 2019
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    To professionalize Forex must sequence in learning so that the information is organized and we know its use well and in a correct way
    First of all, brother, we must read well about Forex lessons, the important thing is to start reading well to gain information and have a good knowledge of the initial Forex terms.
    Then we move on to watching videos that explain Forex and here it is easy for us to understand everything that is going on in the video because we have gained a background on Forex and we knew the terms that enabled us to decode the video.
    After this we choose a indicator or two we master them well and make a good strategy in line with the way we trade we choose the frim that we are working on and the pair that we work with and the best focus only one pair because the lesson is not in diversification but in focus follow one pair makes you know how to move well.
    After this we move to the experimental account to apply everything we have learned, no matter how long it is, it is according to the capacity of each trader possible for a year, 6 months or more.
    After all this we can move to the real account and start the real profit from the market and keep in mind the emotions also do not be afraid until we lose real opportunities and do not trust ourselves to the extent that we think that we are smarter than the market this is the biggest mistake and let's stay away from greed because it is the biggest danger to the trader and to set logical goals to keep us away greed.
    In all of this, capital management remains the most important, it is strategic and not part of the strategy and protects us from all risks even if we enter randomly

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