The importance of fundamental analysis in Forex.

Recently, the number of opponents of fundamental analysis has increased significantly; many traders do not attach any importance to it when trading Forex.

Why analyze the economic situation or follow the news if the price includes everything?

The unpleasant result of such conclusions is triggered stop losses, and if the trader did not take care of stop orders, then drained deposits.

Yes, it is not always possible to predict how a currency will behave after the release of this or that news, but it is better to be prepared for the appearance of those same ones and take their release into account in your trading.

Neglecting this factor is especially dangerous when trading scalping ; in this strategy, it is physically sometimes impossible to set a stop loss.

Therefore, trades are exposed to maximum risk, which is reinforced by the large volume of positions. During the release of really important news, the trend accelerates so much that the order to close the order is executed with a maximum delay; this costs the trader, at best, a couple of dozen points, with scalping and a completely drained deposit.

In addition, one cannot ignore such an issue as the expansion of the spread during the release of news, for example, you saw a rapidly growing price and entered the market without noticing that the spread on the currency pair instead of the usual 2 points became 20. And this is quite noticeable if you use leverage greater than 1:100.

To avoid surprises, it’s easier to take a few simple measures:

• Consider the Forex calendar when planning new transactions.
• Close positions before news release if the direction of the transaction contradicts the forecast.
• Control the spread size before each trade.
• Trade using risky strategies at a time when the emergence of new events in the currencies forming the currency pair is excluded.

Yes, you can trade on the stock exchange solely on the basis of technical analysis, but fundamental factors will always make adjustments to the effectiveness of this very trading, so it is easier to take them into account than to correct the consequences of unforeseen events.