The major players in the foreign exchange market is mostly composed of the multinational companies, the central banks of the world, the hedge funds in billions of dollars and lastly the banks that ties up with them and provides service.
They create their trading plans by studying the latest news in the economy and political concerns and developments. These traders also watch out for the announcements of the G-7 authorities that has jurisdiction on the monetary policies. Thus the right approach in trading in the foreign exchange market is to start fundamentally and then have a technical entry and exit.
How the Best Fundamental Scalps Occur Scalping is really driven by events and news. However it is not as easy as purchasing good macroeconomic news and then selling the negative news because if this was the case each foreign exchange market trader will become rich quickly.
Success in forex trading is not very simple. It is necessary to remember that primarily positive or negative results in the economics usually mean nothing to the forex market. The FX market is very speculative operating on perceptions as well as the expected outcomes. This means the comparison relative in nature would matter greatly than the certain ones.
Operating on mere expectations is not sufficient alone to make trades that can gain profits for the traders. This is the importance of integrating technical analysis and incorporating fundamental systems.
Most of the profitable scalps fundamentally driven happen with extreme technical state. The setups with high probabilities usually happen when there is a positive fundamental condition taking place along with conditions of technically overselling. When this occur currencies has the tendency to bounce and participants with shorts hurries up covering the positions they have.
While when prices have been greatly overbought similar situation happens just in reverse. Each market participant hurries for the exit resulting in an overflow of orders for selling. This momentum can still be traded with profits to its downside.
Conclusion Foreign exchange trading has multiple aspects which needs a trader to have technical abilities and a fundamental know how. Fundamental scalping based on the macroeconomic news is really possible and can offer high profits.
The trader should always remember to pay keen attention to the fundamentals and technicality of each trade and this takes practice to get used to them. It may take quite awhile before a trader can fully learn the methods and those who have been able to learn the approach is already enjoying success in for a long term trading in the forex market.