Over the years, the popularity of news trading has been really high. Although the price-driven momentum can result in huge gains and profits, you must still be extra careful not to put yourself in a tough position. After getting exposed to the market through MetaTrader 5, you will find yourself wanting to improve for the better, acquire better performance, and obtain continuous profits. This is the dream of every trader, something that’s hard to attain and others even end up quitting without experiencing the joys of it.
Every trader has this constant urge to implement their uniquely made trading strategy, as they constantly add new items that they think will complete their strategy. To create a strategy, you will have to look for reliable trading software, a fundamental, technical and mixed analysis if you are eager to make your own trading strategy.
Understanding the Fundamental Analysis
In Forex trading, fundamental analysis is the prediction of trading results after a significant event and it is transitioned into trading. As you already know, Forex trading is known as one of the most volatile markets. But the highest volatility is recorded whenever there are news releases and other fundamental events that could affect the movement of the market. Most of the time, these events are known beforehand but their actual results are somewhat unpredictable.
How Useful Is A Fundamental Analysis
Fundamental analysis is not only beneficial for fundamental traders. If you want to profit from the currency movements, you must stay updated with the fundamental events. For technical traders, there will come a time when your technical analysis will only show the most appropriate point of entry for your trade. Right after the trade, there might be some additional economic news that will get released and you won’t get regularly updated with it.
This will cause a tragic instant stop-loss and even worse, the dreaded instant stop-out. So to keep yourself from such situations, you must remember to be cautious at all times and stay updated with the fundamental events by employing a fundamental analysis of your trading strategy.
Kinds of Fundamental Analysis Software
Forex Calendar
This is considered the ultimate source of data for a trader’s fundamental analysis. Forex calendar is a type of software that actively lists important events as well as their expected time, power of influence, affected currencies, previous values, real values, and expected values.
But first, you need to choose the right time zone. Select your local time zone from the dropdown menu of the software. After selecting the local time zone, choose a particular time span in which you plan to perform the fundamental analysis. The time span now depends on the trader but it is highly recommended to look as far as a week ahead. This means that picking the right trading software will create a huge impact on your trades.
OCA Orders
One Cancels Another (OCA) orders is actually not a trading software commonly used to predict fundamental events in MetaTrader 5. However, it is something that is very helpful for fundamental traders. Just as its name suggests, it allows you to get two different types of orders – the sell limit order and the buy limit order. These two are very useful in preventing unfavorable instances on your trading account.
