When you start out in Forex currency trading you will be faced with deciding which of the two main styles to use. Of course, you could combine both styles but there are only so many hours in the day, so it is likely that you will choose one or other of them.
We will explore the main elements of these Forex trading styles below.
Fundamental Forex trading
As a beginner, this is probably the least likely style that you will use. Fundamental trading is based on the examination of economic data. That said, you may indirectly use fundamentals as some of the data used is covered in the day to day news bulletins and in newspapers.
Fundamentalists analyze government reports, current events, news coverage, political events, changes in interest rates, GDP (Gross Domestic Product) changes, inflation predictions, retail price data, unemployment levels and any other factors that they consider important in currency fluctuations. This can extend to political elections, attacks by terrorists, military conflicts, earthquakes, hurricanes, etc.
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