Should you avoid forex news of all types until you have gained enough experience of the fundamental dynamics of the forex Australia market? You should not because only by dealing with forex news items will you properly understand their potency. Here are some tips to get you on your way to being a fundamental trader.
Keep an Eye on the Economic Calendar
The economic calendar is the most important tool for you if you want to become a fundamental trader in the forex Australia market. The economic calendar contains pertinent information on all fundamental factors.
It contains details of all forex news items in terms of their release date, the expected information they will contain, and the level of impact they can have. You take your lead from the economic calendar which is why you should always keep an eye on it.
Prioritise News Items
Some forex news items are going to have a big impact on the forex Australia market while others will only create a small flutter in the way forex rates move in the market. It is part of being a fundamental trader to know which news items are important and which can and should be ignored. Therefore, you should plan everything in advance with the calendar and prioritise news releases.
Consider Inherent Volatility
Regardless of whether you have understood the impact of a particular forex news item on the forex Australia market or not, you have to always be mindful of the volatile nature of the market. The reason for this is that when news items are released the market becomes especially volatile. Thus, you should prepare for all contingencies.
Take Anticipation into Account
As mentioned earlier, your calendar will contain information on projections of what any particular news item will contain when it is released. After its release, you will be able to see both the anticipated values and the actual values in the news item.
Whenever you place a trade in the forex Australia market, whether before or after the release of the news item, you have to take anticipated values into account because they also affect the way the market plays out.
Be Aware of Revisions
There is another element that you will have to keep an eye on. This is the fact that sometimes forex news items are revised even after they have been released and have started to have an impact on the forex Australia market. These revisions can change the impact of the forex news item drastically which is why you must take that contingency into account as well.
Practise Money Management
When you take all contingencies into account as a fundamental trader in the forex Australia market, it means paying special attention to money management techniques because these techniques are designed to keep your losses to a minimum just in case your projections are wrong.
This entails using special orders like stop losses, take profits, and trailing stops while at the same time focusing on position sizing to protect yourself from undue losses.
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