Forex Fundamental Analysis Versus Forex News Trading - What Are the Differences?


Forex Fundamental Analysis can be an intimidating topic for Forex traders and let's be honest, it is much easier to look at some technical indicators, moving average crosses, or Fibonacci retracements rather than “reading between the lines” on Bernanke’s 22- minutes speech and make split- second trading decisions. But the same could be said about Technical Analysis methods such as the Elliot Wave theory or the notorious Neural Network based trading, and also the conclusion is that in order to master either Fundamental or Technical Analysis, it'd require investments of both time and efforts…


That’s why FundamentalForexOutlook. com was created, its objective is to make the daunting task of forex fundamental analysis bearable for any normal Forex trader, by giving you the proper tools such as: breaking news, commentaries, historical charts, and fundamental scores at your fingertips, helping you make the best trading decisions.


Just Before we dive into the deep end, let us simply take a moment to define the distinctions between Forex News Trading and Forex Fundamental Analysis, because for lots of individuals, they are one and the same, but that can't be further from the truth. Here are some significant distinctions:


1. News trading in a nutshell is trading based on surprises, it might or might not have anything related to fundamental analysis, as it is primarily based on the market perception and psychology by judging the forecast/ actual releases at the time. But Forex Fundamental Analysis makes up about the complete outlook of specific foreign currency based on its economical indicators( such as GDP, CPI, PMI, Trade Balance, etc…), monetary policy, and other breaking news that is affecting the longer- term value of the currency, i. e. Outlook.


2. Another interesting difference between News Trading and Forex Fundamental Analysis is that News traders don't often think about prior releases unless there are major revisions, however for fundamental analysts, prior releases are starting factors of evaluation, and a better than prior release figure is generally considered good, regardless of the news release forecast… Of course this might present some inconsistency with Forex news trading, but just don't forget- fundamental outlook is for the long- term; think of it as gravity, it’s always there… Market may be driven by other forces temporarily, but it will eventually fall back in direction of fundamentals.


3. Fundamental Analysis doesn't change often, and unlike news trading where the market could end up volatile as soon asa news release, fundamental outlook continues to be the same( most of the time) unless of course there is substantial evidence in both market sentiment and concrete economic data… The general rule is unless there are good reasons to change our view, we won't.


To summary it, by understanding the basic difference between Forex news trading and Forex Fundamental Analysis and by using FundamentalForexOutlook. com, it helps you stay on the right side of the market by giving you the resources you'll need. You'll be able to trade foreign currencies with powerful Outlook Score against currencies with vulnerable scores, specifically from a longer- term point of view. The advantage of the Outlook Score is the fact that when a foreign currency goes against it, it mostly will come back, providing you with a golden opportunity to place your longer- term trade based on fundamental trend… 

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