It is easy to make a living with forex with a limited fund. If you want to live a life seating at home, watching television (news) and spending most of your time in front of a computer or a smart phone then forex may be the ideal job for you!
Making a living in forex means to keep track of daily news events worldwide. These are the fundamentals of forex and it can drastically change the value of a currency in just a few seconds of a breaking news. This means if you want to profit in forex you must be prepare for any drastic fluctuations (volatility) in the currency market.
Keeping a track in the daily events makes a huge difference while profiting in the stock market. Politics, business events even the weather and time plays a critical role in the stock market. Forex market as you know are open 24 hours Monday to Friday and during this time there will be lots of volatility in the market.
Every day of the week new events will raise not only on the economic calendar where most of the agenda is pre-booked but there will be also breaking news events that will conflict your daily forex agenda. This is why fundamentals plays the most part in the currency volatility. Missing a news event and only counting on what the economic calendar is a mistake that can lead to profit losses.
In forex and general stock market news is everything! Missing or not keeping a track of it can lead to big losses which can take time to overturn. Keeping track of the news will ensure that your profits keep raising on daily bases. In forex depending on the margin that you set up you can still lose money. Having your positions open overnight can lead to variable interest charges set up by your broker. Ideally you want to close a position before the closing trading hours of the day while netting your profits. And this can only be archived by keeping the track of the daily news events.
In short anything doing with the economic calendar, politics, news and so are called Fundamentals and they play a big part in forex. Other is Technical Analysis which we will talk later on. But for now, what you should know is that Fundamentals plays 80% part in daily forex while the remaining 20% is Technical Analysis.
