News trading is Fundamental Trading?

[Newbie]

I always thought that Fundamental trading is basically (world and financial) news trading but after a short chat with a friend it now seems like they are completely 2 different things. Could any one please explain what is the main difference between News and fundamental Trading?

[Fred Smilek]

The actual comparison is between Technical trading and Fundamental trading. These are the two types of analysis used for trading. News trading is very volatile. I do not recommend trading news. If you value your account, my advice is to not trade during news.

[fxpips]

Fundamental Analysis is a type of market analysis which involves studying of the economic situation of countries to trade currencies more effectively.

Trading the News is a strategy in forex trading where in you trade before or after important economic news announcement. Within minutes, you see currency pairs moves rapidly. After a major news release of an economic announcement, a country’s currency can gain or lose one hundred points almost instantly. So the risks are very high! If the potential profit is huge, the potential loss is equally as large or larger than your potential profit.