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EP120: Is There A Secret Sauce to Fundamental Trading?
In this episode of Truth About FX, Walter walks you through using fundamental analysis in “predicting” future shifts in interest rates — from a technical trader’s view — and how you can take advantage of expectations. He takes the example of an important political figure’s speech that changed the anticipation towards GBP and how this kind of news can really make or break your trade. He also recommends “solid” traders for those that are looking for the “secret sauce” of fundamental trading.
Download (Duration: 07:21 / 8.41 MB)
In This Episode:
00:37 – play off
02:49 – surprise news
04:41 – naked chart
06:30 – get out
Tweetables:
Look to a really far away target. [Click To Tweet].
Pay attention to surprise news. [Click To Tweet].
Take the trade early. [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hi, Walter. How do I use fundamental analysis to determine the future or expected interest rates changes by Central Banks?
Walter: Well, I’m really more of a technical trader, that’s what I’ll say about that. Here is what you can do. You can play off of the expectations — and I think that’s what most fundamental traders do. They play off expectations.
For example, as we are recording this, yesterday I was doing a webinar with some traders and we were like 13 minutes away from some major news in the United Kingdom.
What was happening on the charts was the chart was a really bullish chart on the Pound. I was looking at the GBP/USD and I said, “I don’t know what she’s going to say.” It was the Prime Minister Theresa May and she’s going to make an announcement.
I said, “I don’t know what she’s going to say” — and I’ll post this video for those of you that are interested in this. I’ll post it in the shownotes so you can see what I’m talking about. It was a very bullish pattern on the H1 chart. I don’t know what she’s going to say but my guess is it’s going to be bullish for the Pound.
The only reason I say that is because I see a bullish pattern here. Now, nobody knew what she’s going to say except for a few — probably speechwriters or whatever — and the Pound was actually kind of doing like a fake out move or was like moving down and then wobbling around and getting really volatile on the back of her announcement which was 13 minutes away at the time of the recording of the webinar.
Or, at least at the time, we’re looking at the chart and so what end up happening was she said, “Yeah, we’re going to have a surprise election”. She called an election and that wasn’t really expected at all and the Pound took off massively.
I’m sure you know, you saw the charts last night too or in this morning or whatever...
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By Walter Peters (FXJake) and Hugh Kimura (Trading Heroes)In this episode of Truth About FX, Walter walks you through using fundamental analysis in “predicting” future shifts in interest rates — from a technical trader’s view — and how you can take advantage of expectations. He takes the example of an important political figure’s speech that changed the anticipation towards GBP and how this kind of news can really make or break your trade. He also recommends “solid” traders for those that are looking for the “secret sauce” of fundamental trading.
Download (Duration: 07:21 / 8.41 MB)
In This Episode:
00:37 – play off
02:49 – surprise news
04:41 – naked chart
06:30 – get out
Tweetables:
Look to a really far away target. [Click To Tweet].
Pay attention to surprise news. [Click To Tweet].
Take the trade early. [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hi, Walter. How do I use fundamental analysis to determine the future or expected interest rates changes by Central Banks?
Walter: Well, I’m really more of a technical trader, that’s what I’ll say about that. Here is what you can do. You can play off of the expectations — and I think that’s what most fundamental traders do. They play off expectations.
For example, as we are recording this, yesterday I was doing a webinar with some traders and we were like 13 minutes away from some major news in the United Kingdom.
What was happening on the charts was the chart was a really bullish chart on the Pound. I was looking at the GBP/USD and I said, “I don’t know what she’s going to say.” It was the Prime Minister Theresa May and she’s going to make an announcement.
I said, “I don’t know what she’s going to say” — and I’ll post this video for those of you that are interested in this. I’ll post it in the shownotes so you can see what I’m talking about. It was a very bullish pattern on the H1 chart. I don’t know what she’s going to say but my guess is it’s going to be bullish for the Pound.
The only reason I say that is because I see a bullish pattern here. Now, nobody knew what she’s going to say except for a few — probably speechwriters or whatever — and the Pound was actually kind of doing like a fake out move or was like moving down and then wobbling around and getting really volatile on the back of her announcement which was 13 minutes away at the time of the recording of the webinar.
Or, at least at the time, we’re looking at the chart and so what end up happening was she said, “Yeah, we’re going to have a surprise election”. She called an election and that wasn’t really expected at all and the Pound took off massively.
I’m sure you know, you saw the charts last night too or in this morning or whatever...