Most traders these days do not choose fundamental analysis over technical analysis to guide their trading efforts. The reason why forex charts are almost always picked over forex news items is that the former type of analysis is much easier to learn and implement than the latter type.
Even so, traders who are naturally inclined towards using forex news for analysing the market should not curb their natural tendencies in favour of the easier method. This is important because being comfortable with your chosen strategy and style is extremely important if you are going to succeed in the forex market.
Moreover, there is a way through which you can make trading with forex news items easier on yourself. This is by getting a mentor who can coach you through the intricacies of fundamental trading. Here is why you should get a mentor if your goal is to trade in the forex market on the basis of forex news items.
Ideally, your mentor would have a lot of experience in the forex market. Moreover, when choosing your mentor, you should also make sure that he has specific experience in trading on the basis of forex news items. This experience will come in very handy because fundamental trading is based entirely on how well you know and understand the market.
In fact, unless you learn the very basics of how the market works, what economic conditions affect currency values, and how governments work, you will not be able to succeed in fundamental trading. These elements are exactly what the experienced fundamental trading mentor can help you with.
Knowing these theories, concepts, and hypotheses is one thing and applying them in the live market is quite another. The leap from theory to application is something that most fundamental traders have a lot of problem with.
For example, you may know why an ‘x’ forex news item is important and how it can affect currencies, but you will be unable to apply this knowledge because you will also need to know how other forex traders actually view the news item. This application is also something that your fundamental trading mentor can help you with.
Accountability is extremely important in forex trading because it keeps you in check and careful about which trades you place in the market. Your fundamental trading mentor would keep you accountable by watching over your progress in the forex market.
Moreover, he would also keep an eye on your interpretation of forex news items and correct you whenever there is a need for the same.
In fundamental trading, emotions can be even more damaging than they are in technical trading. The reason for this is that the interpretation of forex news items is significantly more subjective while interpreting forex charts is more objective.
This increased subjectivity in the process can make you very susceptible to your own emotions. Your fundamental trading mentor will teach you how to set aside your emotions, regardless of how intense or serious they may be.