http://www.theforexnittygritty.com/forex/fundamental-based-forex-trading Fundamental Based Forex Trading In recent weeks we have written about conservative and aggressive Forex trading, strategic trading and profitable tactics for trading online, and technical Forex trading. Previously we talked about trading BRICS currencies, the currencies of the emerging nation economies of Brazil, Russia, India, and China. While one may choose to trade major currencies with the use of technical Forex trading, the decision to trade the BRICs or other emerging nation currencies often has more to do with fundamentals. Fundamental based Forex trading is more adapted to the longer term than is technical trading. Fundamentals of the Colombian Peso versus the US Dollar in 2012 As an example of fundamental based Forex trading, those interested in fundamental based Forex trading would have spotted the rise in value of the Colombian peso versus the dollar early in 2012. They would have consulted fundamentals and found that Colombia is coming out a prolonged period of civil unrest. The economy is starting to boom and a free trade agreement is now in place with the USA. Fundamental based Forex trading would have predicted that the peso would continue to rise throughout 2012, which it did. It would also have indicated that Colombia would probably start buying dollars to keep the price of the peso from going up to far, which they did.

1. Fundamental Based
Forex Trading
By www.theforexnittygritty.com

2. In recent weeks we have
written about conservative
and aggressive Forex
trading, strategic trading
and profitable tactics for
trading online, and technical
Forex trading.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

3. Previously we talked
about trading BRICS
currencies, the
currencies of the
emerging nation
economies of Brazil,
Russia, India, and China.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

4. While one may choose to
trade major currencies
with the use of technical
Forex trading,
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

5. the decision to trade the
BRICs or other emerging
nation currencies often
has more to do with
fundamentals.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

6. Fundamental based
Forex trading is more
adapted to the longer
term than is technical
trading.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

7. Fundamentals of the
Colombian Peso
versus the US Dollar in
2012
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

8. As an example of
fundamental based Forex
trading, those interested in
fundamental based Forex
trading would have spotted
the rise in value of the
Colombian peso versus the
dollar early in 2012.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

9. They would have
consulted fundamentals
and found that Colombia
is coming out a
prolonged period of civil
unrest.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

10. The economy is starting
to boom and a free trade
agreement is now in
place with the USA.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

11. Fundamental based
Forex trading would have
predicted that the peso
would continue to rise
throughout 2012, which
it did.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

12. It would also have
indicated that Colombia
would probably start
buying dollars to keep
the price of the peso
from going up to far,
which they did.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

13. Strategy and
Fundamentals
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

14. Picking a trading strategy
has to do with what
approach you want to
take in developing a
successful Forex trading
system.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

15. In strictly fundamental
based Forex trading, the
trader looks at
economics, monetary
policy, politics, and world
events.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

16. He or she looks at these
for both currencies in the
pair traded.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

17. In the case of trading
BRICs currencies, the
basic underlying
fundamental is that these
nations’ economies are
expanding and have a lot
of room to grow.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

18. The trader is less
interested in market
sentiment along the way
than where one currency
is headed when traded
against the US dollar or
another currency.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

19. The benchmark for
fundamental based Forex
trading is what the
relative values of a given
currency pair will be in
several months or a year
based on solid
fundamental research.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

20. Then the trader can look for
price bargains that occur
during the current time
frame and buy low in
expectation of a nice reward
when the market comes
around to what
fundamentals predicted.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

21. The Value of Seeing
the Future
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

22. Most of the world wakes
up to market news and
sees a gap up or down in
the currencies that they
trade.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

23. Fundamental based
Forex trading can help
put you in a profitable
position in this regard.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

24. Reading the
fundamentals and being
ready can be profitable.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

25. If you are sure that a
currency will rise but not
sure how fast, options
can be useful.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

26. By a call on a currency
that you believe is
undervalued.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

27. When the market jumps
to meet your predictions,
execute the options
contract or simply sell
the now-valuable
contract for a profit.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading

28. The beauty of combining
options with fundamental
based Forex trading is
that it limits risk and
gives traders a bit of
leverage as well.
http://www.theforexnittygritty.com/forex/fundame
ntal-based-forex-trading