Market fundamentals. Part 1 - Page 99
Page 99 of 100 FirstFirst ... 49899596979899100 LastLast
Results 981 to 990 of 991

Thread: Market fundamentals. Part 1

  1. #1
    Educator
    Join Date
    Jun 2013
    Posts
    1,103
    Thumbs Up
    Received: 579
    Given: 189

    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!

    Not allowed!

  2. #981
    Trader
    Join Date
    Apr 2016
    Posts
    4,048
    Thumbs Up
    Received: 20
    Given: 9
    Quote Originally Posted by layigold View Post
    I know that retail traders provide liquidity for big market players based on what I have read in the previous threads you made on price action.I know there are useful information available to traders beyond the price action but if retail traders think he can take those things as the basis for taking decision, it may be very hard to be successful in trading because he does not possess the same financial ability like institutional traders
    As a retail trader you can follow the institutions but those institutional trader always trade with strong fundamental analysis and planning. So you need to have that awareness, actually analysis is not complete until you use fundamentals also and planning is not complete until you follow risk management. Trading is risky and even using stop loss at wrong place you have more chance to hit stop loss.

    Not allowed!

  3. #982
    Trader layigold's Avatar
    Join Date
    Dec 2013
    Posts
    10,145
    Thumbs Up
    Received: 164
    Given: 90
    Since retail traders do not create trend but the big players do by relying on strong fundamental factors , it will then be a wise decision for retail traders to exercise patience and allow the big players determine the direction of the market before taking advantage of that . The problem now is when to know exact time that will happen , I think it is the chart that reveals that and that is the more reason why a retail trader cannot do without looking at the chart but the institutional traders can accumulate position without having to look at the chart the way those of us who are retail traders do . It is even recommended her that traders should keep his eyes on" hot spot" on the market, and those who are carefully following this thread, they will know what hot spot areas stand for

    Not allowed!

  4. #983
    Trader
    Join Date
    Aug 2014
    Posts
    3,452
    Thumbs Up
    Received: 10
    Given: 9
    Quote Originally Posted by Bhave4U View Post
    As a retail trader you can follow the institutions but those institutional trader always trade with strong fundamental analysis and planning. So you need to have that awareness, actually analysis is not complete until you use fundamentals also and planning is not complete until you follow risk management. Trading is risky and even using stop loss at wrong place you have more chance to hit stop loss.
    We can actually follow the trend pf tje market, because that is just the result of the participation of big banks and institutions. We should consistently and with patience, keep trying in making our trading more effective with better strategies. Knowing the market fundamentally and having basic knowledge is the foundation of a good trading career.

    Not allowed!

  5. #984
    Trader
    Join Date
    Apr 2016
    Posts
    4,048
    Thumbs Up
    Received: 20
    Given: 9
    Quote Originally Posted by MIGHTYRAMESH View Post
    We can actually follow the trend pf tje market, because that is just the result of the participation of big banks and institutions. We should consistently and with patience, keep trying in making our trading more effective with better strategies. Knowing the market fundamentally and having basic knowledge is the foundation of a good trading career.
    You can follow the trend with the help of signals from your chart patterns. Another way is you can know the trend through news analysis and fundamentals. The skills of analysis play a huge role in earning profits and whether it is about learning fundamental analysis or technical analysis you always have the best option of practice on demo which is risk free.

    Not allowed!

  6. #985
    Trader ara's Avatar
    Join Date
    Dec 2013
    Posts
    1,834
    Thumbs Up
    Received: 106
    Given: 184
    Quote Originally Posted by Bhave4U View Post
    The skills of analysis play a huge role in earning profits and whether it is about learning fundamental analysis or technical analysis you always have the best option of practice on demo which is risk free.
    Market analysis in forex trading is not easy, because we not only have to analyze whether the market will go up or down, but we need to know the level for overbought / oversold, retracement point, reversal point, etc. So this is more complex than what we thinking about.

    For example, you and me have the same analysis that the market will go up.
    But both of us have different target point, lets say you have 40 pips target, and I have 20 pips target.
    Then the price rose 30 points and then reversed course. The price has been touched my target point, but has not for your target.
    From this case, my analysis is correct, because the price goes up and touches my target point.
    But your analysis is not correct just because the price is not touches your target point. Your analysis for market direction is correct, but your analysis for target point is wrong.

    Not allowed!

  7. #986
    Trader
    Join Date
    Aug 2014
    Posts
    6,453
    Thumbs Up
    Received: 55
    Given: 35
    Quote Originally Posted by ara View Post
    Market analysis in forex trading is not easy, because we not only have to analyze whether the market will go up or down, but we need to know the level for overbought / oversold, retracement point, reversal point, etc. So this is more complex than what we thinking about.
    You are right and in depth analysis is needed and then we can know when to open a trade, how long we can keep the trade open and how much profit we can expect. A traders ability to analyse and make study of the market to make predictions is his big asset and helps him find suitable opportunities for himself. Price action analysis is a good way for both long and short term based trading.

    Not allowed!

  8. #987
    Trader
    Join Date
    Aug 2018
    Posts
    190
    Thumbs Up
    Received: 3
    Given: 0
    The thought here is that a trader utilizes a similar exchange volume lots for each exchange. Along these lines is easy to comprehend for the individuals who have as of late begun trading. It's recommended to pick little exchange sizes. When you utilize a similar part size without fail, your account can show stable development. This is a decent option for the individuals who can only with significant effort change in accordance with the exponential development of their exchange sizes due to higher feelings of anxiety which are related with it.

    Not allowed!

  9. #988
    Trader
    Join Date
    Aug 2019
    Posts
    5
    Thumbs Up
    Received: 0
    Given: 0
    market participants should see major economic reports to watch out.Fundamental analysis refers to the study of the core underlying factors that influence the economy of a particular entity. It is a method of study that attempts to predict price action and market trends by analyzing economic indicators, government policy and societal factors (to name a few) within a business cycle framework. For forex traders, the fundamentals are everything that makes a country tick.

    Not allowed!

  10. #989
    Trader
    Join Date
    Jul 2019
    Posts
    9
    Thumbs Up
    Received: 1
    Given: 0
    If I could tell my younger self three things before I began trading forex, this would be the list I would give. Utlimately though, if you are just starting out in the forex market, the best thing you can do is take time to learn as much as you can, starting with the basics. Read guides, keep up to date with the latest news and follow market analysts on social media.

    Not allowed!

  11. #990
    Trader J_C_Anderson's Avatar
    Join Date
    Oct 2018
    Posts
    152
    Thumbs Up
    Received: 2
    Given: 1
    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.

    Not allowed!

Page 99 of 100 FirstFirst ... 49899596979899100 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •