We’ll look at shares separately. For now, let’s begin with the economic calendar. This is a list of data releases that provides insights on a country’s economic conditions. These will affect currency values, and in some cases will be influenced by them, as well. Announcements here usually come out on a regular basis and traders know ahead of time when to expect them. They provide expected results ahead of time, and real results on the deadline. If the results are better, a related currency will jump up on the surprise and if they disappoint – down.

News is another important factor. Usually, the larger the economy, the larger its data’s influence will be on world events and – indeed – the more of an impact world events have on IT! So that was in the gulf puts up oil prices. It represents a shortage emanating from the region which is still the world’s largest supplier of that commodity. Trade wars between the US and other governments will threaten the dollar, but the world’s economy as a whole. Up shoots gold, which is what we call a safe-haven asset – the one traders flock to because its value remains rather constant. However, then the DEMAND for gold will increase, and up goes ITS price.

With shares, and again, I’ll only go into this briefly, one of the main tools for traders is the quarterly earnings period about a month after the end of each yearly quarter. Companies report their revenues and how much that translates into in earnings per share. Like in the calendar, we have expected results and real results. And this is important. Because at the end of the day, value is a communicated characteristic. It’s agreed upon. There’s a consensus, and it’s usually determined by a panel of experts. They do the majority of the work for us and let us know ahead of time what to expect in the next report – economic or corporate.

The rest of us are in a rush to stay in tune with the market. That’s why by the time the result comes in, most traders have already bought or sold the asset in accordance. Its price has already adjusted, and the results are already priced in. It’s when there’s a surprise – and there nearly always is – that it gets interesting. That’s when everyone’s in a mad race to readjust their portfolios while the asset is over or under priced.

So, if you think that being stuck by a chart waiting for it to respond to your invested wishes is gut-wrenching, be sure that the life of a FUNDAMENTAL trader can ALSO rouse a buzz.