Carl Young of Johnson City, TN: How Different Traders Approach Trading in Foreign Exchanges

Carl Young Johnson City, TN learned early in his day tradingcareer that for as long as there have been financial exchanges and trading, different traders have been disagreeing on the most profitable and efficient ways to trade, be it stocks, bonds or currencies.

This is why there are so many strategies and approaches to trading in any exchange. In a way, these strategies reflect how the markets really work. If everyone was using the same strategy and the same approach, there would be no market because everyone would be doing the same things. 

The two most popular approaches to currency trading are fundamental and technical.

Fundamental Approach

Every day organizations, businesses, and governments release economic data to the markets. This data provides information whether the economy is growing or shrinking and gives a glimpse into what may happen in the future. Examples of this data are interest rates, unemployment rates, housing prices and trends, export and import volumes, consumer spending and confidence, manufacturing numbers, commodities stats and prices.

A fundamental approach suggests that this data is the primary driver of the markets. Traders that use fundamental approach trade only based on the numbers of the economies of different countries.

Technical Approach

The technical approach is very different from the fundamental approach. Technical traders believe that every market sentiment is reflected in market price. Technical traders assume that all the data that fundamental traders use have already been factored into the price charts along with the opinions of all investors, traders like Carl Young of Johnson City, TN and speculators from all over the world.