Fundamental Analysis (lesson 14)

Now in this section, we will look at how you can identify the sentiment.
We will look at what tools professionals use it , and how you can replicate that analysis.
So what you should be looking at?
The things we will be going over in order to prepare for the session are also included in this course.
So let's begin by going through the tools that you will be using to identify sentiment and how you should be approaching these on the daily basis.

All professional traders use real-time news feed and research analyst reports to give them an edge when it comes to deciding where the market should go next.
The point of this tools is to get them news quickly.
You will have access to full real-time news feed as part of this course and we will spend some time going trough how this works, and how you should approach it to get maximum benefits.

This is the exact same information that is being used on trading floors, first of all, the idea of the audio news feed is to get the market moving news instantly without having personally research through hundreds of sources to get that information.
There are trained the team of analysts behind the feed watching the market and with access to every professional news source available.
The cost of this news sources alone are in tens of thousands of dollars each month, and analysts who sit through these feeds are trained to identify only the market moving events.
Once the have been identified they communicate via audio news feeds, the purpose of the squawk is the only total relevant information is communicated so you are not disturbed unless it benefits you and your trading.
These squawks can happen any time of the main European session, so it's best to have audio turned on at all times, to compliment the audio there is also text feed that is constantly updated with everything that is squawked plus extra analysis and research to stay tuned into the markets.

The text feed is there for you to feed you information about what the market is doing, what they are thinking and how they are trading in given time.
These include filters like prices where traders are placing and where they placed stop orders...
As we looked earlier knowing where everyone else is placing their stop can be vital information.
Then we have sentiment wich will tune you into the markets immediately.
Within seconds, you will know reasons behind moves and where the market will be trading in the upcoming session.

This is the first place you should start each day when constructing your daily trade plan.
Along with this, you should be also using your reading list and follow the online sources to get expanded the view of what is happening as it will give you the deep understanding of what's happened.
Of corse for the first few months you will need to follow wit ha professional trader as they analyse and interpret this news for you but over time, you will start to develop the skills yourself and position to be completely independent in your own analysis.
Attending the analysis briefing is your important part in developing in your first months of a carrier.
These experience will give you exact process you should follow each day for you market analysis.
All the professional before looking at market study the previous session and research the current market sentiment and this type of preparation should be part of your trading routine also.
Once you have this information you can then formulate you trade plan.
When you are trading on your own you need to use certain tools you can't trade without.
And we will look at this tools along with some ideas for your personal routine.
So when it comes to tools professional traders use pretty much everything that gives them information edge over the rest of the market, so think of things like premium news feed ( you will get free live news feed), or social media sites like twitter.
Twitter is great because it gives you on the ground analysis all over the world as events are taking place.
The best people to follow are those people that have a job making this news come out fast, financial journalists, economists and analysts, central bank watchers.
Social media should be part of your toolkit, it's not powerful as real-time news feed but it is still good.
The service you will use have all of it included, you will watch my main feed get that information.
You will be constantly tuned into markets so you will be able to make profitable decisions quickly.
Your trading desk should be and the mountain of information.
You may be wondering how you can use all these tools effectively..
So your trading day begins as you reach you trading desk, as we mention this should be at least 30 min before the market kicks off so you are fully prepared.

There is certain question you should be asking and of course answering.
First question: What is the main sentiment driving the markets in yesterday session?
Next question: What happened in the most recent overnight session to effect or drive sentiment?
Next question: What is the market doing at the open of the current session?
Next question: What are the key data points done in relation to the expectations?
Did they come out better or worse?
If so was it by the significant amount?
And how does this fit in the overal fundamental picture?

For example, if we are buying US Dollar in the long run then if CPI data beat expectations
we know there if very good chance we know this move could drive the price through a session.
On the other hand, if CPI comes below expectations there may be a selloff but how long in will really last given the overall picture and the fact the figure is not really much worse than the market was expecting.
This is the type of thinking process you need to form your habits as you trade each day.

The next question: Why would you enter a trade right now?
What is going to make this pair move if i enter the trade?
The better you answer this questions the more money you will make.
If you can't answer this questions then the trade is likely low conviction and you have more chances of loss.

First, you day should start by getting an overview of the markets.
The best way to do this is to visit the sites from your reading list but ofcors you will get this information in my news feed.
But you can also use this list:
[SITES TO FOLLOW]
http://www.centralbanknews.info/
http://www.bloomberg.com/topics/currency
http://www.forexlive.com/
http://www.cftc.gov/MarketRe…/CommitmentsofTraders/index.htm
http://www.cmegroup.com/…/interest-r…/countdown-to-fomc.html
https://www.globaldairytrade.info/
http://www.forexfactory.com/calendar.php

Trader Alen