My trade point [Okachan-man]
For individual investors to win in FX, it is important to acquire technical analysis and fundamentals analysis, but there are several key points you must keep in mind when applying those skills. Here we have Mr. Okachanman explain the important points he values in trading.
*This article is a reprint and edit from FX攻略.com July 2019 issue. Please note that the market information written in the main text differs from the current market.
Okachanman Profile
Born in Fukuoka Prefecture in 1980. Hobbies: news searches and bar-hopping. Special skill: not sleeping. Started FX in 2011 and now lives a comfortable life as a full-time trader. He has strong curiosity and exceptional information gathering and analytical abilities. His abilities were recognized by the “Traders Team Inishie,” making him a core member of the team. He specializes in swing trading based on fundamentals analysis.
Inishie-style FX Blog：Fundamentals Trading
Style that centers fundamentals analysis for strategy
My trading focus is fundamentals analysis (hereafter referred to as fundamentals). I decide most of my strategy—currency pair, entry direction, take-profit target, trading duration—based on fundamentals analysis. Fundamentals is about imagining the future from information. Technical analysis is important, but I believe fundamentals allows for trades where humans have the greatest edge.
That said, fundamentals can be difficult, and many people don’t know what to do or how to apply it to trading. So this time, we will summarize three points: “What does fundamentals analysis do?”, “What should we start with?”, and “How to apply it to trading?”
【What does fundamentals analysis do?】
→ Fundamentals analysis is like drama or a novel
First, fundamentals analysis begins by collecting and analyzing information (news and economic indicators) to understand the current state of a currency and a country. To illustrate with a current focus, Brexit. As of April 2019, the three parties embroiled are the European Union (EU), moderates in the UK, and hardliners in the UK, each with their own motives, leading to a standoff and an ongoing quagmire.
The EU has proposed concessions to make it easier for the UK to agree to a withdrawal, and the UK moderates led by Prime Minister May are pushing for a withdrawal with an agreement from the EU concessions. However, the UK hardliners are prepared to accept nothing less than favorable terms to their country and are prepared for a “no-deal Brexit.” This quagmire (drama) is what fundamentals analysis imagines and follows to see how it will unfold.
