 To catch the market either way it goes, don't forget the NFP numbers just before, so it comes out about 1.30pm London time GMT and the market is thinning out and then once the number comes out, so if the number is great, you tend to see the market rally all the way to the upside okay and if the numbers are terrible, you tend to see the market break all the way to the downside. Hey guys and welcome back to my channel, my name is Dapoulis, now like I was saying earlier guys, today we're going to be debating fundamental or technical analysis okay, so I'm going to be explaining to you guys the difference between both, the pros and cons of both and which one you should be using for your trading or actually, preferably how we can use both of them to make more money in this market. But before we go into the nitty gritty of this video, I want you guys to do me a little favor, just smash the subscribe button right there, just smash it right there and just drop me a comment, tell me how this video was helpful so that I just can keep making more videos okay and it helps me with my YouTube algorithm, the more comment you guys drop, the more people get to see this video and everybody's happy okay, the more people get to learn from this video okay, so just hit the subscribe button, drop me a comment and smash the like button. Alright guys so let's proceed, so the first guy we're going to be speaking about is fundamentals okay, Mr. Fundy right, so what are fundamental, what basically is fundamental analysis, now fundamental analysis is basically when a trader, just say you are the trader now and you want it to buy the Euro okay, fundamental traders look at fundamentals that go on in a certain economy before they get into the, before they buy the particular currency. So basically guys fundamental traders like to look at fundamental stuff, what are the fundamentals of the economy, now fundamentals are basically macroeconomic factors, what do I mean by macroeconomic factors, don't worry it's not that complex, macroeconomic factors are things like GDP, interest rate and unemployment okay, I think these are the three most important fundamental factors that fundamental traders like to look at before they get into any trade, now like I was saying you wanted to buy the Euro, you would obviously want to look at how healthy the Eurozone is doing because if you went and bought the Euro and the GDP numbers over the last three quarters have been absolutely terrible, the unemployment rate is so high and the interest rate is just pure shit, chances are that the Euro is going to tank okay, so if you wanted to buy the Euro you want to look at all these factors so that you know the health, fundamental traders look at these macroeconomic factors to gauge the health of the economy that are going to be investing in, every currency you buy you're pretty much investing in that country's economy okay, so that's exactly what fundamental traders do and yeah, pretty much now remember when I first started learning how to trade actually I actually I just really was a fundamental trader when I first started learning how to trade and I actually had a fundamental strategy okay, the strategy revolved around the non-fampero yeah, NFP for those of you who do not know what NFP stands for non-fampero, the non-fampero is the total number of jobs created within the US economy over the last 30 days, now as you can see that has to do with and that has to do with employment right, now NFP is one of the strongest macroeconomic news events to come out of the United States, now guys the strategy basically comprised of me basically scrolling down to a lower timeframe okay, so let's do some let me show you guys some example, my fundamental strategy okay, this was my fundamental strategy that I used when I first came into the foreign exchange market like literally guys I used to wait first Friday of every month because that's when the non-fampero numbers come out remember like I said NFP stands for the job numbers, the job numbers that come out from the United States every 30 days okay, so as you can tell if the numbers come out great okay, so if NFP non-fampero numbers come out great the market shoots all the way to the upside and if the numbers come out terrible the the market shoots all the way to the downside I'll take that again, non-fampero basically is the total number of jobs created in the U.S. economy so if employment numbers are great the market will rally to the upside and if employment numbers are terrible the market will fall all the way to the downside so you know as a smart guy I thought to myself I like okay well if that's the case all I need to do was I was just simply gonna wait for the first Friday of every month and I also noticed that just before the news comes out the market tends to get very thin so the market tends to let me just move my whiteboard the market starts to look like this very thin okay I said to myself if the market is very thin just before NFP number come NFP numbers come out and once the numbers come out then the market tends to jump okay so basically if like I said earlier if the numbers are good the market will rally all the way to the upside and if the numbers are terrible the market will collapse all the way to the downside so I did a very clever thing by going to basically at the time I thought it was really clever so I said to myself let me go ahead and set some sell orders sorry my marker seems to be acting up give me a moment I said I was gonna go ahead and set some orders right so I was gonna set a sell order somewhere about here okay somewhere around here and I was gonna sell set a buy order somewhere around here now the essence of this was basically to catch the market either way it goes don't forget the NFP numbers just before so it comes out about 130 p.m. London time GMT and the market is thin enough and then once the number comes out so the number is great you tend to see the market rally all the way to the upside okay and if the numbers are terrible you tend to see the market break all the way to the downside so I said to myself I was just basically gonna set some orders around these okay around these around the the the coin market price just before the num just before the NFP figures came out and I said to myself okay if it's good I'm gonna have a buy order at the top and if it's bad I'm gonna have a sell order top so whichever way the market decides to blow up I still get to be profitable at the end of the day now if you didn't really understand what I just said I'm gonna take it again the market things out okay so the market is very thin low volume because all the traders are pretty much waiting all the traders are pretty much waiting for the numbers to come out because the numbers are so important it literally is the best way to gauge the health of the US economy okay so all the traders are pretty much waiting for these numbers to come out so before the numbers come out before the NFP number comes out the market tends to be very thin very thin so you know like I said being the smart guy that smart guy that I am I set a buy order 10 pips above so that if the market if the numbers come out great and the market wants to rally to the upside it will take my buy order and I get to make a lot of pips now guys you have to understand that about six years ago when I was using the strategy anytime the NFP numbers came out the market pretty much rallied as much as between 100 to 150 pips now that's a lot of pips okay now just imagine if you are trading $50 a point that's $7,000 right there that's a lot of money okay so I said to myself I'm gonna set a buy order right above the market and I'm gonna set a sell order so if the if the numbers come out great to the upside if the numbers come out come out terrible you know the market was gonna break to the downside and trigger my sell order and then I was gonna make all these pips to the downside and if the mark even if the numbers are good I was gonna make all these pips to the upside so this was pretty much my fundamental strategy okay guys however however what now started to happen my days I'm wasting this white this freaking leaves but you know I don't really care as long as I get to explain this stuff to you guys okay so I'm gonna draw it out again pretty nicely so this is the market pretty much thinning out thinning out thinning out thinning out okay and these are my orders okay these are my orders okay right about here okay so the idea I take that again the idea is if NFP comes out good the market will push to the upside okay trigger my buy order and then rally all the way to the upside and I get to make almost 150 pips or if the NFP numbers came out terrible the market was gonna come down here and break here for a sell trade and then you know I was gonna make all these pips to the downside so this was pretty much my fundamental strategy however something happened along the way now this bloody market makers freaking crazy guys market makers and brokers absolutely was people in the world but you know just got to love them because without them this market wouldn't function okay so what this market maker started to do was they started to realize that everybody started putting their orders just above or below the market before the NFP came out so what this guy started doing was they will go just before they need to come out right they will go and spike the upside okay so they will trigger you for a buy trade okay and then they will come back down and trigger you for a sell trade and then so now you have a buy and sell open then they will come and keep the market somewhere about here and then before you know the market just tanks all the way to the downside I know you're probably thinking hey but the market still went down don't forget you have a massive buy trade as well and it's also very possible for them to trigger your sell trade somewhere all the way down here because there's something called a spillage I don't know if you guys can see what I'm showing you guys let me just raise it up pretty nicely okay so don't forget this is the market thinning out and this is the buy trade this is a sell trade you can see they will come and trigger out your buy trade come out and trigger your sell trade and they might not necessarily even trigger your your buy trade about here that's where you put it due to something called spillage or like the claim they might come and trigger your buy trade all the way up here and trigger your sell trade all the way down here so between here and here you're in a massive loss so over a period of time I found out that it was almost impossible for me to be for me to be consistently profitable with this strategy however for those of you who are watching this right now feel free to take you know this strategy up feel free to go and refine it you might find a way to be profitable with it I just I just found a better way for me to go about my trading so guys this is one way this is a fundamental strategy that I was using during my own trading so let now let's quickly recap what fundamental trading is all about like I said to you guys fundamental trading is when a trader looks at the macroeconomic factors macroeconomic news of every single country that they want to be trading their currency okay don't forget when you're trading a country's currency you're pretty much investing in that country and you do not want to be investing in a country that has terrible GDP numbers horrible unemployment figures and has you know the interest rate are just appalling or you know even worse the country is about to get into some some kind of a war I remember was it Russia I remember when Russia was you know having this economic torso with the United States and then Russia had that mad sanction that it that that is stopped on them I think about four four years ago you know Russia had this economic sanctions slapped on them by the United States and guys you know the Russian currency just plummeted all the way to the downside so imagine if you were buying or imagine if you had invested in the Russian currency I can't remember what the currency exactly is called the Russian in Krona whatever it is called I don't really trade currency anyway so imagine if you were invested in that currency and then you know America came and came and give gave the Russian government that sanction imagine being you know being in possession of that Russian currency when the market were just all the way you know sliding all the way to the downside you'd want you wouldn't want to be in that position now this is where fundamentals are absolutely amazing you know for you to trade because now you know that you're able to look at macroeconomic factors before you get into any particular currency so that you can save your ass in case anything bad wants to happen or better still you can position yourself you know in a situation for instance that the US economy has been absolutely growing since Donald Trump become became president that the non-farm payroll non-farm payroll numbers have been looking really good don't forget non-farm payroll numbers are the total number of jobs created in the United States economy those job numbers have been absolutely fantastic I don't know what Donald Trump is doing the guy just seems to be doing something right so the numbers have been very good and that's exactly why the US dollar has been strengthening across board GVP has been falling against the dollar the euro has been falling the dollar has just been strengthening because of these amazing job numbers alright guys so yeah I think that's pretty much is pretty much about it for fundamentals now this one last con I like to tell you about for fundamental analysis of fundamental trading now guys the reason why I also do not really like to use fundamentals as well okay now fundamentals are good to don't get me twisted if fundamentals are good to understand you know the general when I mean general I mean the entire perspective of the health of the of the country however just imagine you looked at the the figures coming out of the eurozone for instance employment numbers are great GDP numbers are great interest rates absolutely fantastic all the economic fund all the economic factors that you should be looking at are looking quite great now you have to understand that the market is crazy man you like the market is moving up and down constantly moving up and down constantly moving up and down now you have this very massive chart right in front of you and the eurozone is like I said the macroeconomic factors are looking very you know good and all that but the market is quite choppy not necessarily choppy the market is you know it's doing this thing is going up and down as a fundamental trader you just you know do not know where to get into the market like you know the economy is good but where the hell do you buy okay because for instance the markets can this can be training somewhere about here at this time okay when at the point of your analysis the market can be trading right about here okay and then the everything is going well the eurozone everything is smiling everything is all dandy and over and then next thing okay you're like all right everything is fine and then Monday morning you go ahead and place a buy and then by the very next day you're down okay and then obviously you you wake up the following then you have some more profit and then what happens all the marketers collapse all the way to the downside what I'm trying to say in essence is that as a fundamental trader you just you know I mean you can't just go and buy because you need to have some form of some form of a strategy you know a chart strategy a technical strategy for you to get into this market because even when all the fundamental factors line up pretty nicely you can still lose money in the market just by simply look looking at the fundamentals alone now this is exactly why I tell a lot of people not to really watch the news that much because the news fundamentals as far as I'm concerned are just a distraction okay I'm sorry to other fundamental traders out there the fundamentals can be you know a distraction every now and then so I like to stick to the next game we're talking about which is technicals I like to I'm more of a technical guy okay and yeah so don't worry I'm gonna be teaching you guys how to marry both of them both fundamentals and technicals fundamentals are good like look at how what happened in Russia if I didn't if I was not looking at the fundamentals and I saw a buy set up on my technicals I would have gone to buy and then got in crushed because I feel to look at the technical for fail to look at the fundamentals you know just to go just try to explain my point that both of them can be used hand-in-hand do not neglect one for the other just that I tend to lean towards the technicals a lot more so guys I'm going to be taking you over to the next order of the day order mr. technicals text I love me some text man technical analysis okay part of my writings absolutely horrible now what exactly is technical analysis technical analysis is basically when a trader uses past price performance past price action to predict what's going to happen in the future now for some strange reason the FX market just loves technicals okay I realize that over time the market tends to repeat whatever I did in the past okay history always pretty much repeats itself in the foreign exchange market so what other form of analysis to use that technical analysis technical analysis is your ability to use past price action to predict what exactly is going to happen in the future so that's exactly why I like to use technical analysis and in technical analysis we like to use tools like trend lines support resistance all that stuff okay we have trend lines TLs we have support and resistance we have price action you know we have Fibonacci I love me some Fibonacci okay guys so these tools the reason why I use these tools for my technical analysis is to basically help me pinpoint now let me take you back the reason why I like to you I like I love to use technicals is I mean just look at this chart right about here right as a fundamental analyst right you've done your analysis and we decided to buy about here and then what happens the market starts to spike all the way to the downside as a technical trader I have no business I would not even be buying about here okay I would like to wait for the market to form a trend a technical trend making lower lows and lower highs and then I would want to trade off of that technical that technical trend okay so you can see how if you're just using only fundamentals you know you're pretty much going blind into the market but as a technical analyst you can pretty much pinpoint better entries better entry you know where to put your stop loss you can estimate your risk you can estimate the turning points in the market oh my lord like as a fundamental analyst you can't do any of this you do not know the turning points in the market okay you're pretty much blind you're just looking at some reports that some economists put out there as a technical analyst as a chartist you get to understand the flow of the market man what you want about all right so now like I said earlier guys how do you marry both of them together how do you marry fundamentals and technicals together it's very simple and very straightforward well like I was saying earlier I'm 95% technical okay so I would first of all do my technical analysis first technicals first open up the chart if you do not know how to do technical analysis check out some other videos on my channel I'm always screaming about technical analysis and how you know my channel will literally take you from scratch as to how to get started trading in Forex market and how to you know start using technical analysis so if you're confused about technical analysis check out some of my other videos but always do technical analysis first so I remember there was this particular trade I'm probably going to throw in a screenshot and somewhere in this video now it was GBP USD now GBP USD being the cable what happened was I saw a very nice shorting opportunity on GBP USD on the big time frame on the weekly time frame and I was getting ready to go short like I was bearish because the trend was looking down was making lower lows and lower highs lower lows and lower highs so I was getting ready to get into the GBP USD short right and I was you know 95% already focused technically on that chart you know I was gonna like I was gonna start setting this market and by the time I did some fundamental analysis I realized that Brexit Brexit was just around the corner okay and Brexit pretty much meant that the the British economy was actually slowing down or there was some form of uncertainty about you know Brexit as to whether the UK was gonna leave the EU and stuff like that okay they already left the EU just basically some uncertainty about the economy and now when once there's uncertainty around any economy back to fundamental analysis once there's uncertainty around the political factors about the economy what tends to happen is that a lot of traders a lot of investors tend to flee away from that economy causing the currency to pretty much you know plummet causing the causing the currency to pretty much crash okay so now you can see how I've done my technical analysis and then I could see a pretty much a sell opportunity the market was looking bearish technically first technically first GBP was looking GBP as he was looking technically short and then as God will have it as mr. fundamentals will have it you know the Brexit was just around the corner so you can see how I've used both of them marry them both guys I made over a thousand six hundred pips shorting the cable absolutely huge move one of the most amount of pips I've made in my forest career like literally guys I've been shorting the cake and the cable for I think all the way back from when did that move happen probably about June probably about June of last year yeah I think it was about June of last year that's when I started shorting the cable so guys I've been shorting the cable for quite some time now because you know I saw the the bigger picture you know guys I'm always speaking about looking at the bigger picture on the technical choice so I saw the bigger picture on the technical analysis chart and then I know I wanted to get showed and then brexit was also the catalyst now guys that's the word I've been looking for catalyst fundamentals are catalyst okay once you're in a technical trade the fundamentals most often times that not come and help you push that trade in your direction fundamentals are catalyst fundamentals is not the reason why the market is moving technicals are the reason why the market is moving and fundamentals just give it that push alright guys on that note I love you guys so much I hope you found this video very very helpful once again smash the subscribe button and you know I really appreciate it smash the subscribe button if you found this video helpful kindly comment below and I mean feel free to say if you are fundamental technical analysis just drop me a comment below what kind of trader are you just tell me are you a technical actually there's one last one called sentiment sentiment sentimental trading I don't really believe that so there's technical sentimental and fundamental okay so just smash a comment below tell me what kind of trader you are and I'll be sure to respond to you guys just let's check let's check in the comment section alright guys alright guys on that note I love you guys so much and I'll see you guys in my very next video alright guys adios amigos and peace out bye take it easy bye