How to master the art of fundamental analysis

Fundamental analysis has always been ignored by novice traders. Novice traders are so busy with the technical data, they never really understand that high impact news has the potential to change the course of a trend. Many traders in the UK trade the high impact news to secure big profits. They are often known as institutional traders. But being new to this industry you should never try such things. You need to use the three major types of analysis to find the best trades in this market. Since the technical part is relatively easy, we will highlight the key factors which you need to know in order to conduct the perfect fundamental analysis.

What is fundamental analysis?

Those who are new might not have a clear idea about the fundamental analysis section. Fundamental analysis is the study of the economic factors of a certain country’s economy. If you do some research you will find that the large banks and institutions are always assessing the fundamental factors in order to identify the key movements of the market. During the event of high impact news, you will see the Forex market becomes extremely volatile. So what’s a key reason for such volatility? The change of interest among the investors and consumers which is reflected in the fundamental data.

Learn more about the high impact news

Not all news has the potential to change the overall trend of the market. You need to focus on interest rate decision, Final GDP, average hourly income, industrial growth and the consumer sentiment, more than other factors. These are the most powerful price driving catalyst of the market. But at times the leading officials might come up with drastic speech creating unexpected market volatility. In such a case, you will have nothing to do except trade with low-risk exposure. So focus on the key events of the market to project your investment.

Practice in the demo accounts

The first thing you need to learn is about are demo accounts. Demo trading accounts are often considered as the best way to master UK financial spread betting. Some of you might think demo trading is waste of time. However,  professional traders often use their demo accounts to fix the common problems of their system. The market is always changing from moment to moment so you must bring the necessary changes into your system. Things might seem a little bit complex and boring at the initial stage but if you stick to your practice environment you will be able to understand the importance of demo accounts in due time.

Trade during the news

You need to demo trade the market during high impact news events. Most of the time, new traders get involved with their real trading account without knowing the risk factors. Unless you demo trade during the high impact news releases you will never understand how it actually feels  to deal with this highly volatile market. So, if you trade the news without having any demo trading experience it won’t take much time blow your account. First of all, train yourself and familiarize with the market extreme movements.

Taking help from the experts

The last thing you can do is to take help from experts. The expert traders will always guide you and help you to find the best trades even during extreme market conditions. You might not understand the importance of proper training prior to your live trading. But if you find a professional trader it’s better to go for the paid trading course. They will give you valuable information about this market and most importantly they will help you to develop a perfect system. However, if you still wish to learn to trade without spending any money, you are most welcome. But make sure you are ready to do some extensive research about this profession.

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