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Getting Started

Welcome to Forex Fundamentals! This guide will help you navigate the platform and understand how to begin using our analytical tools effectively.

Your First Steps​

1. Understanding the Dashboard Layout​

When you first access the platform, you'll see several main sections:

  • Currency Scoreboard - Your central hub for identifying trading opportunities
  • Individual Analysis Tools - Detailed views for specific analytical layers
  • News & Calendar - Real-time information feeds

Take a few moments to familiarize yourself with the navigation and where each tool is located.

2. Start with Market Context​

Before diving into specific pairs, it's essential to understand the broader market context:

Check Market Sentiment First​

Navigate to Market Sentiment to determine the current market environment:

  • Risk-On Environment (Positive Score): Markets are optimistic, favor Risk-On currencies (AUD, NZD, CAD, NOK)
  • Risk-Off Environment (Negative Score): Markets are fearful, favor Risk-Off currencies (JPY, CHF)
  • Neutral Environment: Mixed signals, require more careful pair selection

This context will guide your entire analysis process.

3. Explore the Currency Scoreboard​

Head to the Currency Scoreboard for an overview of all major pairs:

  • Look at the Heatmap - Green indicates bullish opportunities, red indicates bearish opportunities
  • Check the Intensity - Darker colors show stronger conviction
  • Review the Table - Compare Cross-Pair Scores, BOP indicators, and Swap rates

Don't feel pressured to find a trade immediately. The goal is to identify a few pairs that show strong signals worth investigating further.

4. Understand Individual Currency Strength​

For pairs that catch your attention, check the Intrinsic Analysis:

  • What drives each currency? - Understand the fundamental factors
  • What's the trend? - Is the intrinsic strength increasing or decreasing?

5. Deep Dive into Specific Pairs​

Select a pair from the scoreboard to access the Cross-Pair Analysis:

  • Review the Cross-Pair Score - This weighted score combines intrinsic values with market dynamics
  • Check News Sentiment - Is recent news supporting or contradicting the fundamental bias?
  • Look for Confluence - Do multiple factors align?

Your First Analysis: A Practical Example​

Let's walk through a complete analysis:

Step 1: Check Market Sentiment​

Suppose the Market Sentiment shows +65 (Risk-On). This tells us:

  • Markets are optimistic
  • Risk-On currencies should outperform
  • Good environment for AUD, NZD, CAD, NOK vs. JPY, CHF

Step 2: Review the Currency Scoreboard​

Looking at the heatmap, you notice AUD/JPY showing a strong green color with a Cross-Pair Score of +75.

Step 3: Check Intrinsic Analysis​

  • AUD: Score of +15 (deflationary pressure, strengthening)
  • JPY: Score of -20 (inflationary pressure, weakening)

This confirms fundamental alignment: AUD strengthening, JPY weakening.

Step 4: Deep Dive into AUD/JPY​

Navigate to the Cross-Pair Analysis for AUD/JPY:

  • Cross-Pair Score: +75 (strong bullish bias)
  • Swap: +2.5 (positive carry on long positions)
  • News Sentiment: Mostly bullish on AUD, neutral on JPY
  • Balance of Payments: AUD showing surplus (bullish)

Step 5: Check Institutional Positioning​

Head to COT Positioning:

  • Institutional traders are moderately long AUD
  • Not at extreme levels (room for the trend to continue)

Step 6: Review the Economic Calendar​

Check the Economic Calendar:

  • No high-impact events for AUD or JPY in the next 48 hours
  • Good window for entry without immediate event risk

Step 7: Wait for Price Action​

Now that fundamentals are aligned:

  • Don't rush in immediately
  • Wait for a technical setup - Support bounce, breakout, pullback, etc.
  • Set alerts - Use price alerts to notify you when price reaches key levels
  • Plan your risk - Decide your position size and stop loss before entering

Common Beginner Mistakes​

1. Trading Without Confluence​

Don't trade a pair just because one indicator looks good. Wait for multiple factors to align:

  • ❌ BAD: "The Cross-Pair Score is high, so I'll buy now"
  • ✅ GOOD: "The Cross-Pair Score is high, Market Sentiment aligns, COT is supportive, no major news events, and I see a technical entry signal"

2. Ignoring Market Sentiment​

Trading against the dominant market sentiment is challenging:

  • ❌ BAD: Buying AUD/JPY when Market Sentiment is at -80 (Extreme Risk-Off)
  • ✅ GOOD: Buying AUD/JPY when Market Sentiment is positive or neutral

3. Overtrading​

You don't need to have a position every day:

  • ❌ BAD: "I need to find a trade today"
  • ✅ GOOD: "I'll wait for high-quality setups with strong confluence"

4. Ignoring News and Events​

Always check the Economic Calendar before entering:

  • ❌ BAD: Entering a position 2 hours before a central bank announcement
  • ✅ GOOD: Waiting until after high-impact events for clarity

5. No Price Action Confirmation​

Fundamentals show direction, but timing requires technical analysis:

  • ❌ BAD: "Fundamentals are bullish, so I'll buy at any price"
  • ✅ GOOD: "Fundamentals are bullish, so I'll wait for a pullback to support and a reversal candle"

Practice Makes Perfect​

Week 1: Observation Only​

For your first week, don't trade. Instead:

  • Review the Currency Scoreboard daily
  • Note which pairs have strong signals
  • Follow those pairs throughout the week
  • See if the fundamentals eventually reflected in price

Week 2: Paper Trading​

Once you're comfortable with the tools:

  • Use a demo account or paper trading journal
  • Practice your complete workflow
  • Document why you took each trade
  • Review what worked and what didn't

Week 3+: Small Positions​

When you're ready to trade real money:

  • Start with small position sizes
  • Focus on high-quality setups only
  • Keep a detailed trading journal
  • Gradually increase size as confidence builds

Getting Help​

Documentation References​

If you need more detail on any tool:

Next Steps​

Once you're comfortable with the basics, move on to:

Remember: The goal isn't to trade frequently, but to trade well. Focus on quality over quantity, and always prioritize risk management over potential profits.