Taking advantage of fundamentals is ALL that separates the pro trader from the wannabes.
And the best part is… You don’t need to be an economists or have a degree in finance to make money with news.
Take two traders, both just beginners, both took the same beginner’s Forex course and learned the basics of trading. Both have similar education and background, and both love trading and their goals are to trade for living for the rest of their lives. Let’s call them “John” and “Henry”.
John spends all his time studying the chart, he experiments with new indicators, new parameters, and constantly trying out new trade ideas. He gets his emotions in line. But he never realizes the fundamental factor to Forex trading… as a matter of fact, he purposely ignores news releases and he never makes the simple correction that will make his trades profitable.
John, later in his life, is the guy you might find frequenting discussion forums, public online trade (chat) rooms, posting some amazing trades, but never ever show you his live account statement… that is, if he even have a live account at this point.
Henry, on the other hand, early on senses that there must be more to Forex trading than just looking at the chart. He may not understand the fundamental news effect to the world economy, but he makes a simple adjustment in the way he looks at trading. Despite the warning from die-hard technical traders to ignore the news, he trusts his intuition and does what’s right… not what people told him.
Henry becomes a professional trader. You never see him frequenting Forex discussion forums, or online trade rooms, because he’s too busy making a fortune in his live account…
This is NOT a bogus comparison. You CANNOT become a successful Forex trader as long as you think and act like 95% of Forex traders, who end up losing.