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    How to View and Forecast the Market: Forex Fundamental Indicators
    How to View and Forecast the Market: Forex Fundamental Indicators
    How to View and Forecast the Market: Forex Fundamental Indicators
    Ebook122 pages1 hour

    How to View and Forecast the Market: Forex Fundamental Indicators

    By Kostyantyn Kondakov

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    About this ebook

    This book is the most comprehensive practical guide on fundamental analysis for traders who work in the Forex market.

    The book describes in detail the main macroeconomic indicators and fundamental factors which influence quotes on the foreign exchange market. It tells the reader about the central banks’ main monetary policy instruments and the extent of their impact on the formation of currency rates.

    The author reveals the psychological nature of Forex market participants’ reaction to economic news and also gives traders important recommendations on using fundamental data for successful trading. The author uses concrete examples to illustrate the connection of the Forex market with other financial and commodity markets.

    This book is aimed both at beginner traders and professionals, who wish to improve their skills of predicting the dynamics of currency rates and planning trading operations.
    LanguageEnglish
    PublisherBookBaby
    Release dateOct 21, 2013
    ISBN9781483511115
    How to View and Forecast the Market: Forex Fundamental Indicators

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    Reviews for How to View and Forecast the Market

    4/5

    9 ratings2 reviews

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    • 5/5
      I have always been a person who loves to makes sense of the fundamentals of things.The Investment world is definetly one of those area where I want to know the Mechanics of what is really creating the outcome we normally see on the screen.

      I have always been a scientist at heart and I remember a video of Elon Musk suggesting people should always accustome themselves to thinking in the basis of first principle.This book has provided for me the full picture of what the candle sticks mean for me as I am staring at the screen.

      It is a must read for anyone who wants to make sense of the pandemonium in the market.
    • 3/5
      This book explains many fundamental important factors that Influence the currencies.

      What it doesn’t do is to forecast or summarize all economic indicators to gauge the economic growth what is important to trade trends.

      Worth reading but no real edge.

    Book preview

    How to View and Forecast the Market - Kostyantyn Kondakov

    Author’s Note

    I am delighted to be with you again in the pages of my new book, and for those holding my book for the first time – it is a pleasure to meet you!.

    I decided to publish this book for those who have made a serious decision - as I did once – to understand what the foreign exchange market is and learn how to make money on it.

    While my first book MetaTrader 4 – Learn to Earn in FOREX is more like a high school diploma and an investor’s handbook for overseas traders, this book is like a college degree, and I have decided to share the knowledge to help those who are looking for their path in life.

    Regrettably, publishing a book does not bring any real profit in this country and I have had to defer more lucrative activities in order to write it, but my desire to do some good and help is my real vocation and mission and that is why everything has worked out well! I do not live for the sake of money – God leads me and it was His will that I should pass my knowledge on to you.

    Before you start reading the book, let me give you some advice – study everything with a pure and open heart, do not let greed and covetousness get inside you, and you will discover the true knowledge that will allow you never to worry about money again!

    As to the book itself:

    Listen mate, it’s not the most exciting of the subjects… – my friends shook their heads, smiling in response to my idea of writing a book on fundamental indicators of the foreign exchange market. The reaction of people who know me well, and know what Forex trading means to me, was quite eloquent.

    The majority of people think that trading in the exchange market is similar to a walk through a mine field with pots of gold thrown about, and in order to get that pot of gold you need to be as wise as Solomon, have a PhD in economics and, moreover, be extremely lucky.

    Of course, I understood the sarcasm of my conversation partners and their doubts and even agreed with them somewhat. There was a time when it was very boring for me to plough through wilderness of professional terms and dreary statistics.

    However when dipping into the depths of macroeconomics, I realised that this subject is surprisingly exciting. The Forex market is not chaos theory - it is the practice of resounding victories. Spicy details regarding consumer prices, scandals around industrial production, exposing facts about interest rate decision making, constant dynamics, emotional whirligig, intricate mind games – all this would fascinate even the most indifferent of us!

    This book is for people who are still undecided on a method of market analysis, and who have little or no experience in the field of economic statistics.

    I would like to tell you about the most significant world economy indicators in plain language and an interesting way as well as to ignite a winner’s fervour in you.

    Do you still think of a trader’s job as something to do that is dry, boring and devoid of creativity? But who is to stop you from turning Forex trading into something you love and something you are crazy about? No one but you! So welcome to the world of currency trading, a world of rational and creative people, where you will surely find yourself a place!

    Konstantin Kondakov

    1. Market Trading Requires Analysis - Fundamental or Technical one? That is the Question

    1.1. Analysis – a Breath of Life for Trading

    These days you won’t get raised eyebrows by mentioning currency trading. This type of activity is growing more and more popular and it is unmatched by any competition in the field of earning on the Internet. The sheer scale of the foreign exchange (Forex, FX) market simply blows your mind! Just imagine, the daily turnover of the world currency exchange constitutes about three trillion dollars! It is no wonder that trading attracts so many participants.

    It should be noted that in the last two decades the financial market has gone through radical changes. The main reason for this has been the rapid speed in the progress of information technology. Previously the job of a currency trader was clouded in mystery and was considered to be available only to a chosen few. Now anyone can become a trader.

    However the size and availability of currency trading are not a ready formula for success. Only the few who realize that you will not achieve the expected results without dedication and effort can count on the effectiveness and profitability of this business.

    A trader coming into currency exchange and looking to earn decent money has to understand that the Caesar’s I came, I saw, I conquered will not work if you do not add one more crucial item to that – I analysed. It may not sound too inspiring but it is the harsh reality. Trading without analysis – at random or on a hunch – will eventually lead a trader to a fiasco on Forex.

    It’s no secret that the successful Forex trading is based on the ability to make weighed-up and reasoned decisions. However let us agree that it is simply impossible to do that without full and accurate information regarding currency fluctuations; analysis will help you obtain this information.

    Currency rate dynamics is primarily determined by the demand and supply ratio; if the demand for a currency exceeds the supply then that currency rises - which is why traders use these two key factors to forecast currency rates. However, it is hard to predict their movement since there are numerous circumstances that influence demand and supply in the currency exchange.

    1.2. Types of Analysis

    There are two major methods used to forecast price movements in the market; two essentially different philosophies – fundamental and technical analysis.

    Despite the fact the approaches are the complete opposite of each other, they both have the same purpose – to determine the direction of further price movement. The difference is that supporters of fundamental analysis rely on the factors that drive the market while the supporters of the technical one base their actions on the analysis of temporary sequence of data and related graphic images.

    It is very hard for a beginner trader to decide which method to use; technical or fundamental. Technical analysis is at least somewhat easier to understand and you can find some regular patterns (e.g.

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