A fundamental trading strategy consists of strategic assessments in
which a certain currency is traded based on virtually any criteria
excluding the price action. These criteria include, but are not limited
to, the economic condition that the country the currency represents,
monetary policy, and other elements that are fundamental to economies.
The
focus of fundamental analysis lies on the economic, social and
political forces that drive supply and demand. There is no single set
of beliefs that guide fundamental analysis, yet most fundamental
analysts look at various macroeconomic indicators such as economic
growth rates, interest rates, inflation, and unemployment. Several
theories prevail as to how currencies should be valued.
Alone,
fundamental analysis can be stressful when dealing with commodities,
currencies and other "margined" products. The reason for this is that
often fundamental analysis does not provide specific entry and exit
points, and therefor
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