Analysing the market plays a great role in a trader's success. Being able to correctly interpret the information and base a decision on that interpretation is a necessary skill in the arsenal of every professional currency trader. With the growth of technology many assistant tools appeared to make the analysis easier, however, not all of them prove to be entirely effective. For starters, in order to select the right set of tools you need to determine what type of analysis are you planning on running. The two major types of Forex analysis are technical and fundamental. In this article we are going to focus on the best Forex analysis website and other support tools for the fundamental method.
You may already know that fundamental analysis bases its conclusions on the political, social and economical factors. In simple words this can be referred to as trading on the news. Due to its complex and highly subjective nature fundamental analysis can not be automated fully. The news come out every day and sometimes the caused reaction is unpredictable. Therefore, this type of analysis is processed primarily by people, more specifically the Forex trading professionals with expertise in fundamental analysis. There are a few ways to approach these expert’s opinions and utilize it in your trading.
For those of us who prefer the good old fashioned way of learning there are plenty of books written about the fundamental analysis and its specifics. One thing to keep in mind on the lookout for the best fundamental analysis books is that they will not provide you with the up-to-date results. What you will most likely find in one of such books are the ways approach the fundamental analysis and read its results. This type of literature can be helpful in the early stages of trading since it will help you understand the significance of analysis in general and its implementation in particular. As mentioned above, the news come out daily and each news piece can be used for analysis. Not a single physical book is capable of constantly updating the contents. The alternative in this scenario is, of course, websites.
The best Forex fundamental analysis site is the place where you can find the information on all major events and their interpretation through the lens of Forex. This would typically come in the form of a written blog or a video blog. Be prepared for professional slang and terminology since the audience of such websites is mixed between newbies and experienced traders. On the other hand, the analysis usually cuts right to the chase so you will get the dry data with straightforward explanation. It comes in handy when you have limited time and need to start trading soon.
There are three main criteria for choosing the best Forex fundamental analysis website:
- Relevance. The source has to be up to date, ideally providing daily posts covering all the major events. Sometimes the posts would be separated according to particular regions or currency pairs, it is usually all in the name so don’t waste your time reading information you won’t need
- Readability. Although the fundamental analysis results can include many professional terms, it still has to be easy to read. Meaning that with the right amount of prior knowledge you can easily comprehend the given info and successfully implement it in your trading
- Usefulness. The good fundamental analyst will provide a guideline for the market behaviour of the day. Usually this would look like instructions for actions to take in specific situations. Best way to indicate if this type of analysis is right for you is to follow these instructions and evaluate the outcome
With all that said, when looking for the best site for fundamental analysis Forex professionals usually tend to go with their broker. It is all about the convenience of having everything you need in once place. Not to mention, all well established brokers definitely meet the criteria above and make sure to provide their clients with the most insightful and helpful information. And in case you are considering trying to implement the technical analysis in your trading, the broker will always be able to supply the right tools.
