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copy 1 of foundation

Fundamentals Drive My Trading

I began trading with the idea of using pure technical analysis. The basic tenets of TA, that all things are known by the market or will be known, and all that knowledge is represented in the charts, was a big draw for me. TA broke trading down to simple price action, technical indicators, candle charts and I was enthralled.

However, over time, I have also come to love the fundamentals and view them as a primary driver of my trades. If the trend can be likened to the tide in the ocean, the fundamentals are the ocean itself.  The fundamentals lay the foundation for the house to be built on, they prime the canvass so that the master can create a painting and are the waters from which the market tide will flow.

My description may sound esoteric and philosophical but its true. Imagine a foundation being laid for a new building. As more and more details about that foundation become apparent you get a feel for what the building is going to be. Each brick of the building is important, and adds to the whole, but on an individual basis means very little in terms of what the building will look like. The foundation, the fundamental basis the building is built on, gives the building its character. Is it a house, an apartment building, an office? Once you get a feel for what the building is going to be you can start to make educated guesses, speculations, about what it will look like, how many rooms it will have and when it might be finished. The same is true for the financial markets. When you have a grip on what the fundamentals are you can make better speculations on where the markets are going.

What Is Fundamental Analysis

In terms of trading, fundamentals can refer to a couple of different things, depending on which market you are talking about.  Sometimes there is more than one fundamental driver of an asset, sometimes those drivers are in line with each other and other times not. For a stock fundamentals can include the state of the economy, the health of the business, revenue, product pipeline, consumer sentiment, inflation and other economic indicators. For a commodity supply and demand is the biggest fundamental driver although economic conditions have a lot of affect as well. These factors are used to determine if an asset is under, over or fairly priced.

Fundamental analysis also ties into the greater market cycle. The economy cycles between growth and recession and those cycles drive market values. GDP, Gross Domestic Product, is one factor that can be followed as an indicator of the greater market cycle. This is the sum of the output of a region, a country or the world.  Rising GDP, expanding or contracting GDP growth and expectations for growth/decline can affect prices from the near to the long term.

Another thing to consider is how fundamentals affect individual assets. A bullish economy may be good for stocks but it is not good gold and can be both good and bad for oil. Rising GDP and rising GDP expectations are closely associated with a rising stock market. Rising GDP is also associated with rising currency value. When a country is doing well its money becomes stronger.

Within the GDP data, which is usually released on a quarterly basis with monthly revisions, are other fundamental economic drivers of the market. These shorter term data points are drivers of shorter term trends within the greater market cycle. Employment and jobs are perhaps my favorite but there are numerous gauges of inflation, manufacturing, housing  and the consumer that must also be included. Each of these gives a different view of the underlying economic conditions and has the power to move the market

How I Trade The Fundamentals

I like to keep abreast of the economics and the current data so I have a grip on what’s going on, a view of the foundations so to speak. I let the data come and the market do it’s thing. I don’t use any one data point as a trigger other than what the market tells me to do. I have a an understanding of the fundamental conditions but I still let the technicals dictate my trades. A rising tide of fundamentals will show itself in the charts in the form of an uptrend or bull market. As the fundamental picture unfolds there will be catalysts for rallies and corrections and all will be present in the chart as a signal in one form or another. When the technicals and the fundamentals agree, and the signals are in line I make a trade.

My approach to fundamental trading is exactly the same as technical. When the fundamental trends are up, I trade up, when the fundamental trends are down I trade down.  The technicals provide my signals, when they agree with my fundamental look I know I can make a good trade with confidence.


Follow the leader to profits with binary options social trading.

Social Trading For Binary Options

What Is Social Trading?

What is binary options social trading? That is a good question. At first it was a fringe group of traders and websites trying to make sense of a complicated trading environment, now it is a structured community of traders with havens of fellowship like BinaryOptionsThatSuck.com, and Communitraders. At heart social trading is a community of traders that gather together via the internet. They do this in order to learn more about trading, to share ideas about analysis and the market, to gain support and most importantly to make money.

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The websites mentioned above represent the best that binary options social trading has to offer. Other sites have forums, other sites have some form of copy trading, articles about strategy and blogs by professionals but does any other website have the number of professional traders, the amount of trading knowledge, the volume of real live users actively posting on a daily basis and the best demo trading platform of any website on the internet? I don’t think so. The team at BOTS has been working hard over the past two years to build not only the best binary options website, but the best social trading platform.

More Than Simply Copy Trading

Social trading is more than just copying someone else trades. Social trading is the coming together of traders of all levels in a way that enriches the community. It allows the exchange of knowledge and ideas, the growth of the individual and in the end, profitable trading. That is what Communitraders is all about and that is why I use it.  It is an all in one source of trading education, current events, analysis, trading ideas and trading community with features that include a completely free demo account and the ability to link up with other traders.

Typical forex social trading is really just copy trading. There isn’t much social about it. There is no encouragement to interact, limited educational focus and trading that is pretty much cut and paste. All you do is pick traders off of a leaderboard based on only a few easly manipulated details. When you choose to follow a trader on Etoro or Zulutrade you are copying every trade that person makes regardless of their strategy and your wishes, until you cut them loose. Sure, they like for you to copy more than one trader for diversity but with this model you may as well be trading mutual funds, or baseball cards which would be even safer.

Communitraders Is Different

At Communitraders each trade is posted with a title, description and chart so everyone can see how and why the trade was made.  You choose to follow only the trades you want and no others. Yes, you can just copy trades if you want but the real focus is on education, and making profits. A saying I have always loved and that sums up the idea behind Communitraders is this; feed a man to fish he eats today, teach a man to fish he eats for a lifetime. Communitraders wants everyone to be able to make their own trading decisions so they can be profitable for a lifetime.

There are two ways to do this. You can follow more advanced traders and have their trades placed in your accounts or, if you are good enough, build a following of people who will copy you. Either way the opportunity to make money is there because you will either profit from trading or make money as others copy your trades or both.