The Ultimate Fundamental Trading Course for Beginners (In Under 26 Minutes...)
Summary
TLDRThis educational video offers an in-depth exploration of macroeconomics and its impact on trading, focusing on key economic indicators like GDP, inflation, labor market, and retail sales. It emphasizes the importance of understanding these factors for successful trading, and how they influence asset values and price movements. The presenter also discusses the role of central banks, interest rates, and geopolitical events, providing practical tools like a free ebook and a spreadsheet for viewers to enhance their trading strategies.
Takeaways
- 📈 Macroeconomics and fundamentals are crucial for understanding the overall economic performance and how it affects asset values and price movements in trading.
- 🌟 The presenter offers three funded trading challenges to engage viewers and encourages participation by commenting, subscribing, and liking the video.
- 💼 A helicopter view of the economy is necessary to grasp macroeconomics, focusing on broad economic indicators rather than individual businesses or people.
- 📊 GDP (Gross Domestic Product) is a key indicator of economic health, with positive growth suggesting a strong economy and negative growth potentially indicating a recession.
- 💰 Inflation rates, as measured by CPI (Consumer Price Index) and PPI (Producer Price Index), are important for understanding the cost of goods and services and how they impact the economy.
- 🛍️ Retail sales and consumer spending are vital for gauging economic activity, as confident consumers contribute to a thriving economy.
- 🏦 Central banks play a significant role in managing economic stability through monetary policies, such as adjusting interest rates and implementing quantitative easing.
- 📉 Economic indicators like GDP, inflation, labor market conditions, and retail sales should be considered collectively to form a comprehensive view of an economy's performance.
- 🔗 Interest rates are a tool used by central banks to control inflation and stimulate economic growth, with higher rates typically attracting foreign investment and lower rates aiming to boost consumer spending.
- ⚠️ Geopolitical events and financial crises can significantly impact financial markets, leading to uncertainty and shifts in investor behavior towards safer assets.
Q & A
What is the main focus of the video on fundamental trading?
-The video focuses on understanding macroeconomics and its key components that drive the value of assets being traded and how they translate into price movements on charts.
What does the term 'macroeconomics' refer to in the context of trading?
-In trading, 'macroeconomics' refers to the broad economic performance of an economy, looking at the overall health and trends rather than focusing on individual businesses or sectors.
Why is it important for traders to understand the labor force in an economy?
-Understanding the labor force is important because it's a significant part of the economy. Traders look at job additions, unemployment rates, and wage levels to gauge the strength and direction of the economy.
How does inflation affect the economy and trading?
-Inflation, which is the rate at which prices of goods and services are rising, can indicate a 'hot' economy with high consumer spending. However, high inflation can also lead to decreased purchasing power and may prompt central banks to adjust interest rates, affecting currency values and investment decisions.
What role do retail sales play in the economy as discussed in the video?
-Retail sales are a measure of consumer spending, which is a key driver of economic growth. Healthy retail sales suggest a confident consumer base, stimulating the economy and potentially leading to higher asset values.
What is the significance of GDP in understanding an economy's performance?
-GDP, or Gross Domestic Product, is a measure of an economy's overall performance. Positive GDP growth indicates an expanding economy, while negative growth can signal a recession, influencing asset values and investment strategies.
How do central banks influence the economy and trading through interest rates?
-Central banks can influence the economy by adjusting interest rates. Higher interest rates can cool down inflation and attract foreign investment, while lower rates can stimulate spending and economic growth, impacting currency values and investment decisions.
What is the purpose of quantitative easing as mentioned in the video?
-Quantitative easing is a monetary policy tool used by central banks to stimulate the economy by increasing the money supply, typically by purchasing government securities or other securities from the market, aiming to lower interest rates and encourage lending and spending.
How can geopolitical events impact financial markets and trading?
-Geopolitical events, such as wars or conflicts, can create uncertainty in financial markets, leading to a sell-off in riskier assets and a flight to safe havens like gold or stable currencies. This can result in significant market volatility and shifts in asset prices.
What strategies can traders use to incorporate fundamental analysis into their trading?
-Traders can use strategies like supply and demand analysis, focusing on economic indicators and central bank policies to identify trends and potential entry points for trades. They can also look for economic and monetary policy divergences to formulate a fundamental theme that guides their trading decisions.
Outlines
📈 Introduction to Mastering Fundamental Trading
The speaker welcomes viewers to a video on mastering fundamental trading, emphasizing the importance of understanding macroeconomics for successful trading. The video promises to simplify complex economic concepts for everyday understanding. The speaker announces a giveaway of three funded trading challenges and encourages viewers to engage with the video by commenting, subscribing, and liking. The focus is on macroeconomic indicators that drive asset values and their translation into price movements on charts. The video aims to provide a comprehensive view of the economy, rather than focusing on individual businesses or people.
🌟 Understanding Macroeconomics and Fundamentals
This section delves into the definition of macroeconomics, which involves examining the overall economic performance. The speaker uses the analogy of a helicopter view to describe the broad perspective needed to understand macroeconomics. Key components include economic growth or contraction, labor force dynamics such as employment and unemployment rates, wage levels, and inflation. The speaker also introduces the concept of retail sales as a measure of consumer spending and its impact on the economy. The video aims to connect these macroeconomic factors to asset values, such as stocks and currencies, and how they are reflected in market movements.
📊 Key Economic Indicators: GDP, Inflation, and Labor Market
The speaker discusses the significance of GDP as a measure of an economy's overall performance, with positive GDP growth indicating expansion and negative growth suggesting contraction or recession. Inflation is explored through the Consumer Price Index (CPI) and Producer Price Index (PPI), highlighting how rising prices can signal a 'hot' economy. The labor market's health is assessed through employment change, unemployment rates, and wage growth, all of which are crucial for a robust economy. The video emphasizes the interconnectedness of these indicators and their collective impact on asset valuation.
💼 The Impact of Central Bank Policies on Economic Indicators
This part of the video explains the role of central banks in managing economic stability through monetary policy, particularly interest rates. The speaker outlines how higher interest rates can cool inflation and attract foreign investment, while lower rates aim to stimulate spending and economic growth. The concept of quantitative easing is introduced as a tool to inject money into the economy during downturns. The video also touches on the effects of geopolitical events and financial crises on market sentiment and asset prices, with a focus on safe-haven assets like gold and stable currencies.
🚀 Linking Commodity Markets to Economic Fundamentals
The speaker connects commodity markets, specifically gold and oil, to broader economic conditions. Gold is presented as a safe-haven asset that benefits from inflation and uncertainty, while oil prices are sensitive to global economic health and demand. The video discusses how economic downturns can reduce oil demand and prices, and how central banks respond to crises by adjusting monetary policy. The speaker emphasizes the importance of understanding these relationships for formulating trading strategies.
📚 Developing a Macro-Inspired Trading Strategy
The final section of the video provides guidance on developing a trading strategy based on macroeconomic analysis. The speaker suggests using a spreadsheet to track economic data and formulate views on asset movements. The video introduces the concept of economic and monetary policy divergences as opportunities for trading, and the speaker shares a preference for supply and demand trading strategies. The video concludes with a reminder to engage with the content, join the community, and apply the learnings to trading practices.
Mindmap
Keywords
💡Macroeconomics
💡Fundamentals
💡GDP (Gross Domestic Product)
💡Inflation
💡Labor Market
💡Retail Sales
💡Currency
💡Interest Rates
💡Central Bank
💡Quantitative Easing
💡Safe Haven Assets
Highlights
Understanding macroeconomics is crucial for fundamental trading as it affects asset values and price movements.
Macroeconomics involves looking at the economy's overall performance rather than focusing on individual entities.
Economic growth, expansion, or contraction can be indicators of the health of an economy.
Labor force analysis includes employment change, unemployment rate, and wage levels.
Inflation rates are important for understanding the rise in prices of goods and services.
Retail sales are indicative of consumer spending and economic stimulation.
Gross Domestic Product (GDP) readings reflect the overall economic performance.
Back-to-back negative GDP readings may signal a technical recession.
Inflation is measured by the Consumer Price Index (CPI) and Producer Price Index (PPI).
Deflation, where prices fall, can indicate a less sound economy.
A strong labor market with job additions and low unemployment rates is beneficial for the economy.
Central banks play a role in maintaining economic and price stability through monetary policy.
Interest rates are adjusted by central banks based on economic growth and inflation.
Quantitative easing is a central bank action to stimulate the economy by injecting money.
Geopolitical events and financial crises can cause market uncertainty and affect asset prices.
Safe haven assets like gold and certain currencies may gain during times of crisis.
Commodity markets, such as gold and oil, are influenced by the global economic climate.
Developing a macro-inspired trading strategy involves analyzing economic data points and central bank actions.
Fundamental analysis can be combined with technical analysis to formulate trading strategies.
Transcripts
welcome to your first step of mastering
the art of fundamental trading in this
video we're going to dive deep into
macroeconomics understanding all the key
and core components that are driving the
assets that you are trading in terms of
their value and how that translates on
the charts with price movements don't
worry I make this super simple for the
everyday person to understand but all of
this is key and must not be overlooked
if you want to really level up your
trading game to add to this excitement
I'm going to be giving away three funded
sft challenges so what I want you to do
is make sure you comment below this
video why are you excited to learn about
fundamentals make sure you hit that
subscribe button and give this video a
like without further Ado I hope you're
ready have your notebooks at hand and
let's jump straight into this so what
exactly are macroeconomics and
fundamentals well we're looking at the
economic performance as a whole imagine
being in a helicopter and you have that
view over the economy we're not focusing
on just one individual or One Singular
business we're looking at the general
big picture of the economy now when
we're looking at things we want to
understand are we seeing a decent amount
of growth is the economy in expansionary
territory where we're growing growing
growing things are looking amazing or
are we in contraction territory where
the economy is shrinking things aren't
in a great place we also want to
understand the labor force because the
labor force makes a big part of the
economy do we have a decent amount of
jobs being added is the unemployment
rate low are wages high and then of
course we want to look at inflation what
at what rate are prices of goods and
services Rising because if they're
Rising rising Rising typically speaking
we have a hot economy an economy that's
solid because people are out spending
their money so of course prices of goods
and services are going to rise or are we
in a period of where inflation is
falling and instead we're getting
deflation where prices are coming down
down down in an economy which isn't so
sound and we also want to understand of
course the retail sales retail sales is
General consumer spending a consumers
outspending their money stimulating the
economy there's a host of things that
are really important to understand and
put a value on an economy and then of
course it's relating assets such as the
stock market or it's relating currency
if we're looking at the UK economy we
want to understand how growth is how the
economy is performing because that puts
a value on the pound versus its peers so
there's a number of things to look at
which we're going to dive deep into into
this video in further detail now before
we progress further in this video what
I've done for you is I've created an
free ebook which goes into detail of all
the points that we have covered today so
you can refer back to once you finish
watching this video now what you need to
do is join the Discord the fundamental
trading Club Discord via the link in
this description key indicators and
their relevance now we touched upon some
of the core components that make up of
that bigger picture of the economy but
let's dive into those in a little bit
more detail starting off with number one
GDP which is gross domestic product when
we're looking at GDP it's giving us an
idea of how the economy is performing as
a whole are we seeing that growth and
expansionary economy that means positive
numbers and we can get GDP readings on a
month-to-month quarter on quarter or
year-on-year basis or do we have
negative readings minus which means the
economy is Contracting now when we have
backto back negative numbers that means
we have a potential recession a
technical recession for an economy now
it's really important that we look at
GDP because if for example we have such
as the latter that I just mentioned
where we get back-to-back negative
readings contractions a technical
recession this is going to decrease the
value of Assets in that relating economy
so if for example the UK is in a
technical recession in comparison to its
peers then the value of the indices
stocks are going to come down the value
of the pound potentially also going to
come down relative to its peers and that
will turn off Foreign investment now
remember as well with economies foreign
invest
coming into an economy makes a big part
of potentially trying to boost things
okay trying to boost output economies
rely heavily on foreign investment
coming in so never neglect GDP readings
number two inflation so this is the rate
of which prices of goods and services
are rising so when we have an economy
that's running hot people of course are
out shopping spending their money now if
all these people out shopping and
spending their money what do you think
these businesses that are offering these
goods and services doing because there's
such high demand they're going to be
putting up their prices so when we have
a lot of spending going on a good and
healthy and happy consumer prices of
goods and services are typically On The
Rise that we have a heating economy to
get an idea of where inflation's at in
an economy we must look at the such as
CPI which is Consumer Price Index this
gives us an idea of General prices of
goods and services for everyday
consumption such as your general food
energy bills all of that and then we
have ppis which is producers prices
index now with the ppis these are the
costs for the producers of the goods and
services that are going out to the
consumers so are their prices rising
because of course if their prices are
rising they're going to be passing that
on to the consumer as well and then
we're it's going to be contributing to
overall inflation rising in an economy
now we have inflation but then we also
have deflation where prices of goods and
services are falling falling falling so
drastically where consumers are not
outspending consumers are reluctant
they're sitting on their hands perhaps
because the labor market isn't great
wages are low and if people are
reluctant to spend money then of course
this isn't stimulating the economy so
prices are going down and potentially we
could have deflation negative prices
where they just continue to fall because
we have not got a bustling and a warm
economy we've got actually a cool
economy now with all of that decreased
stimulation because people aren't
outspending and those prices are coming
down what we could have is contraction
in growth negative growth as I explained
before with recession now where we have
low
growth and also low prices that is a
really bad place to be for an economy
Japan historically suffered with that
where they had deflation and they were
trying to bring up inflationary levels
because consumers were just reluctant to
want to spend their money number three
the labor market now there's various
components that we observe on this front
starting off with employment change or
jobs being added to the economy if we've
got a decent amount of employment change
a plus figure a positive one where jobs
are being added this is a very
encouraging sign this is great for an
economy because it means we have more
potential people coming into the labor
force it means more people are out
stimulating for these businesses
stimulating as a whole for the economy
and then we also want to look at the
unemployment rate we want typically
speaking for a sound economy for the
unemployment rate to be low less people
unemployed less people claiming
unemployment benefits and that means
more people that are in the workforce
again stimulating the economy we also
want to look at earnings wages what are
people actually getting paid for all
this work that they're doing because if
people are getting paid more money and
wages are on the rise they have more
disposable income to go out and shop
consumer spending spend spend spend
steal stimulate the economy help it grow
the overall output and of course with
all that spending going on as we
mentioned before with inflation prices
of goods and services on on a rise so if
we have a bustling labor market again
this is great for the relating currency
and great for indices as well and number
four retail sales and consumer spending
with retail sales it gives us an
indication of how retailers are
performing and this is important at the
end of the day because it goes back to
the consumer again if we have a health
economic environment we have a confident
consumer we have people that are getting
paid decent money people are going to be
outs spending okay they're going to be
spending spending spending this is great
for the retailers their sales are going
up because the consumer's happy the
consumer's healthy and we have a
bustling economy now with all these key
economic indicators it's really
important that we don't just focus on
one area remember I mentioned at the
start of the video helicopter view view
the bigger picture we want to understand
all those key components across GDP in
inflation the labor market retail sales
so that we can have a view as to whether
the relating assets such as the currency
or the indices are going to be on the
rise or falling one thing that helped me
with this in my early days was I had a
spreadsheet now for you again this is
going to be in the Discord so check the
link in this description to join the
fundamental trading club and this
resource will be there for you
essentially you have a spreadsheet where
for example you can have one column for
the pound one column for the dollar for
Euro Aussie andz dcad so on and so forth
whatever currencies you want now in the
columns as well we're going to have the
economies relating GDP we're going to
have their labor market figures what a
central bank is doing which we're going
to get on to retail sales inflation all
of this so that we can form a bigger
view of how one economy is performing
versus the other because of course that
difference is going to create a big gap
when we're trading right whether it's
trading GBP versus dollar whether we're
trading Euro versus the dollar so we're
looking at the bigger picture so that we
can formulate a view on where the assets
are going to be moving interest rates
and Central Bank policies what exactly
is a central bank and their role well a
central bank is a ruling authority of an
economy they will have the goal and
Mandate of ensuring economic and price
stability so they will conduct monetary
policy action on the back of how an
economy is performing so let's start off
with interest rates if we have an
economy that is growing we're seeing
decent growth
strong labor market good consumer
spending inflation is on the rise
typically speaking in this environment
we will have higher interest rates now
with higher interest rates that
typically means that the relating
currency to say for example in the
United States we have what's known as
the Federal Reserve they are the Central
Bank of the United States if inflation
is on the rise rising Rising because
we're seeing decent growth people out
spending their money they will then need
to have a higher interest rate
environment the reason being is when we
have high interest rates we're also
going to be potentially trying to cool
down inflation because we don't want
inflation running too high because that
causes a problem for the economy then it
means people's affordability is going to
start to diminish if prices and Rises of
goods and services are rising too fast
so then the central bank will raise
interest rates because remember when
we're raising interest rates we're
raising the costs of the general
consumer so for example on our mortgages
on our loans any outstanding credit card
balances the interest that's paid on
that debt Rises so then as a consumer
we're going to be more reluctant to want
to spend our money okay we're not going
to want to spend so much so naturally if
we're spending less that means inflation
should start to come down prices of
goods and services should start to come
down tying in with less consumer
spending in environment of higher
interest rates this is bullish for a
relating currenty
why because it attracts foreign
investment remember it's the interest
that foreign investors earn so if we
have an economy or a central bank such
as the Federal Reserve in the United
States they're raising rates to try and
cool down inflation or raising rates in
an environment of a heating economy keep
an economy that's overheating it's going
to attract foreign investment coming in
because these foreign investors are
seeking the highest interest that they
can earn on their Investments the
highest yield so that's going to attract
foreign investment coming in and then
how do we actually invest in that
economy as I've given with the example
with the Federal Reserve we need dollars
so they may be a foreign investor in
Japan or in Europe or in the UK they
will need to sell their relating
currency so we'll see weakness and
demand for that currency and then
inflows into the United States they have
to exchange their currency into dollars
so the demand for dollar will pick up on
the other hand if we have an economy
that isn't performing so well we have
low growth labor market isn't great
inflation's coming down then a central
bank look to take action in the form of
cutting interest rates so when they're
cutting interest rates remember they're
going to be lowering the cost for us
they're going to be lowering the costs
uh the interest that we are paying on
our outstanding debt mortgages credit
cards loans all of that to try and free
up some more cash for the consumer so
that the consumer will want to go out
and try and spend and try and stimulate
the economy again to try and prevent it
from further Contracting because if we
go out and we start spending our money
again we're going to be stimulating the
economy and then eventually that
inflation that's been falling that
contrac that's been contraction that's
been happening in the economy should
start to pick up some Pace again as the
central bank has then lowered our cost
but on the flip side remember this will
turn off Foreign investment potentially
so if a central bank is slashing
interest rates we could see weakness in
that relating currency because foreign
investors will then start to take their
money out we'll see an unwinding of them
initially coming in to invest in the
economy unwinding and trying to go and
seek where central banks are keeping
their rates higher another action that a
central bank takes in times of an
economy isn't performing so well is
what's known as quantitative easing so
they are effectively trying to print
money pump money into the economy to try
and stimulate things again now they can
do this through various operations where
where we do have that economic downturn
we could get a credit crunch essentially
a credit crunch is where lenders are
reluctant to want to lend money because
of this faltering environment they don't
want to uh go and give out money to cons
consumers in case they they don't get it
back so what a central bank does is they
conduct these operations where they
effectively encourage the banks to lend
they say look take this money we are
giving you this facility we don't expect
you to rush to pay us back we don't
expect you to pay us High interest on
this this is effectively free money for
you to go and obviously then charge a
small interest to the consumer so that
the consumer then goes and borrows from
that financial institution and then what
do you think the consumer then does with
that money that they've borrowed they
then going and spend and they're going
to spend spend spend try and stimulate
the economy now when a central bank is
conducting that action yes it is good
for the economy in the run to come but
initially we may see weakness in that
relating currency cuz remember we are
effectively flooding the markets with
say the case of the Federal Reserve
conducting this quantitative easing
we're effectively printing money and
flooding the markets with dollars so if
we have all that flooding of the market
with dollarss imagine we have so so much
of a float of something so much of of
something building up the value of it is
going to come down it's diluting the
value of the currency so keep that in
your mind as well when a central bank is
conducting quantitative easing now
before we progress further this video I
hope you're all taking forough notes
because fundamentals are extremely vast
but they can be conquered and they will
level up the entirety of your trading
game now obviously I am stuck within
time constraints of this video so what I
have if you check the link in this
description I have a fall in depth
fundamental CA where I break everything
down it's extremely simplified and it's
going to help you be able to translate
this information on the charts and what
it all means we've got various
strategies in there of trading
fundamentals with technicals it has
amazing reviews from the community so if
you're interested in really going into
serious amount of detail simplified but
effective you can check that link in
this description GE political events and
financial and economic crisis now there
are times when these events occur and
they can have big impact on the markets
let's start off with geopolitical we've
seen in the past where Russia invaded
Ukraine this sparked a war between
Russia and Ukraine now with war and
geopolitical tension brings uncertainty
to the financial markets now when we
have uncertainty markets are less
inclined investors are less inclined to
want to invest in riskier assets such as
stock so we will typically see the stock
market selling off in times of war and
instead flights into to Safe Haven so
flows money flows into Safe Haven assets
such as gold gold is deemed a safe haven
asset a safe haven commodity where
people put their money in times of
uncertainty whether that be geopolitical
or whether that be a financial and
economic crisis it's seen as a safe
haven because it holds value during
Market turbulence and then we have safe
haven currencies your likes of your
Japanese Yen reason why that's a safe
haven currency because Japan has been
sort of economically and politically
stable for many years nothing too
drastic happening as such for Japan so
the JPY has been one to put your money
into in times of uncertainty you see JPY
strengthening during geopolitical
tensions or financial economic crisis
same as a Swiss frank the Switzerland is
a sable economy and has been so for many
years and of course the US dollar the US
dollar at the end of the day is attached
to the largest economy in the world is
the reserve currency of the world and is
also a safe haven so during these
periods we will see flights into safe
havens and weakness into riskier assets
when it comes to a financial and
economic crisis where essentially we've
had these huge economic
downturns economies are crashing
essentially financial institutions are
crashing uh consumers are losing jobs
out of work there just no stimulation
happening or stimulating of an economy
we've got a potential recession and this
is where we refer back to central banks
needing to step in and take action in
these environments like slashing rates
and pumping money into the economy to
try and stimulate things again we saw it
with the pandemic with covid where this
pandemic forced economic shutdowns
completely peep borders were closed
logistically uh things were just not
happening everything was just at a
massive standstill so this was affecting
not just individual countries but on a
global level this was impacting e
economic growth and causing large
contractions where we were seeing these
massive downturns in economies and
central banks were having to really ramp
up their effort to try and prop the
economies up again now it's really
important that we take note of signs of
a financial crisis or an economic crisis
because we need to be aware of how are
we're going to position ourselves are we
going to be looking to capitalize on
that in the front of shorting indices
because during those periods indices are
getting hit hard as a riskier assets or
are we going to be putting our bets and
our trade ideas into gold because gold
should start trending to the upside in
on the back of these events and these
crisis or general safe havens as well
commodity markets such as gold and oil
they are largely influenced by the
overall economy let's take a look at
gold for example we mentioned earlier
how gold is deemed as a safe haven it
benefits and thrives in times of
uncertainties with geopolitical tensions
financial crisis economic crisis but
it's also a great
beneficiary of inflation if inflation is
rising drastically of prices of goods
and services globally across the board
gold is a great hedge against inflation
why because where we have inflation
price of goods and services Rising so
drastically for any grien economy say
for example in the United States your
dollar doesn't go as far as it should
because prices of goods and services are
rising so much so your dollar doesn't go
as far it loses that value in in essence
because these costs of these goods and
services are high so gold is a good
hedge against that currency erosion so
during those periods people will put
their money into gold as a safe haven as
a hedge against those periods of high
inflation oil now there are a lot of
components that make up of the oil
Market but let's look at some of the key
points firstly with oil oil is extremely
sensitive to global economy how well
it's doing because if an economy or
economies in general are not doing well
the demand for oil tends to come down
okay the demand for oil comes down and
then prices also fall we saw for example
in the pandemic during covid it's also
very important just before I get onto
this point to look at which countries
which economies are huge consumers of
oil okay who are massive oil importers
so going back to my point with covid
where we had the economic shutdowns and
remember Co started off was reported
started off in China China are the
world's largest oil impor they are a
heavy consumer of oil so when China shut
down what do you think happened to the
oil Market what do you think happened to
oil prices oil prices fell actually they
crash we saw huge selling for the oil
Market because essentially China shut
down their borders you know logistically
people were not moving the economy
economy wasn't moving so there was less
demand for one the world or the world's
huge oil importer so prices fell so oil
is extremely sensitive to economic
conditions if we are in a period of
economic downturn typically speaking we
should see oil prices fall if we're in
Period of economic growth demand for oil
should be higher so prices will rise and
just to round up on oil it's important
to note the correlating currencies with
oil market for example we have Canada
Canada are a major oil exporter so a lot
of Canada's income their revenue comes
from oil sales so if for example we have
oil Market is in a great place oil
prices are rising that is good for the
Canadian economy that is good for Canada
so essentially we have more income for
Canada and the value of the Canadian
dollar should rise but on the flip side
if the oil Market is in a down turn you
know demand isn't great price are
falling then that's going to have a
potentially negative impact on the
Canadian dollar so watch that
correlation as well with oil and other
commodity linked currencies putting it
all together to develop a macro inspired
strategy now we've gone over a lot of
the key Concepts that make up
fundamental analysis understanding all
those key economic data points so that
you can formulate a view the helicopter
view on an economy as a whole because
that's going to dictate the value of the
relating assets whether that be the
currency or the stock markets and then
of course depending on how the the
economy is performing a central bank is
going to be conducting necessary actions
to ensure economic and price stability
so with all of these they provide
opportunities when you refer back to as
I mentioned before about that
spreadsheet remember Link in the
description to join a Discord to gain
access to full eBook PDF and the
spreadsheet to help you analyze
fundamentals but remember we're
formulating a view so if we're looking
at GBP versus dollar we're understanding
economically how is the UK performing
how is that going to influence the pound
and then the same thing for the dollar
how is the United States performing
economically and you're weighing and
both up we want to see if we have an
economic Divergence and of course also a
monetary policy Divergence because if
the bank of England are a period of
raising rates and the FC are not they're
keeping rates unchanged or if anything
are looking to lower rates first before
the bank of England there's a monetary
policy Divergence so that will create an
opportunity for you that will create
what's known as a fundamental theme
interest rate differentials there
because it will give the Pound The Edge
over the dollar economically and on a
monetary policy level and that presents
opportunities that presents Trends in
the market so if you're in line with
such trends like this right where we
have economic and monetary policy
divergences you can incorporate that
into your trading strategy now there's
various strategies that you can trade
fundamentals with I go into serious
detail in my inep fundamental CA of the
link in the description uh I like to
trade supply and demand Bally one of my
main strategies with fundamentals I'm
looking at those key zones marking up
those big zones where we're looking for
buyers to come into play uh demand zones
and also Supply zones where we're
looking those sellers come into play so
I'm looking if we're in a trending
Market I've got my fundamental trend for
whatever reason my fundamental theme I'm
then also looking to tie that in with
the supply and demand Zone if we're in
if we've got a fundamental theme that's
driving GBP dollar as an example to the
upside then I'm looking at my zones to
see how we're going to be working Zone
to Zone to the upside there for my entry
so my fundamentals give me the view give
me a strong bias of where GBP should be
going versus the dollar and in my
technicals give me my entry okay so
there's a lot to cover there as I said
we're we're in time constraints but
there is an in-depth course as a
reminder make sure that you comment
below this video you hit that subscribe
button and the like button to be entered
into a chance to win one of three funded
challenges of sft other than that I hope
you enjoyed that video make sure you do
join the community below the Discord
Community the fundamental trading Club
stay lit stay blessed let's get
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