Generally there are 2 camps when it comes to trading Forex, those that undertake purely Technical Analysis on their charts and those that keep tabs of and develop a Fundamental (Economic) view of the markets and trade accordingly, but is there a 3rd way?I find that by watching the general News Flow and keeping an open ear to economic views, but not serious Quantitive Analysis, just a loose look and feel for what is happening, can provide one with a longer term bias on various currencies and with that in mind you can then wait for an opportune Technical set up with minimum risk to join a potential trend.  For example the second half of 2012 and the first half of 2013 saw a major uptrend on the USDJPY currency pair as the US economy showed signs of recovery from recession compared with a weak Japanese economy.

We took advantage of this differential in these countries economies by trading long on the this currency pair.  In the middle of 2013 and towards the end of last year and continuing into 2014 we have seen a weakening in the Australian economy with a slow down in Commodities and thus the AUDUSD has been in a strong down trend.  These trends can be taken advantage of when trading Foreign Exchange (Forex (Fx)).  If you would like to be able to trade these trends then you ought to check out our next 2 Day workshop, where we will be showing you exactly how to do this.

Top Forex Trading Tip:  By getting a general feel for News flow as it comes out one can start to have a view on likely currency pair trends that may be worth consideration when looking for trend trades.  It should also then be apparent which trades are trend trades and which ones are counter-trend trades.  Once you have developed a fundmanetal view, nothing too serious I might add! then you can use your well honed Technical Analysis skills, along with Patience and Discipline to pick the most opportune moments to enter the trend with minimum Risk.  Try and focus on the higher timeframes to establish what the market may be doing.  By the doing the above it should keep you from over trading and also going against the grain of the market and getting burnt over and over again.