View Full Version : Fundamentals, Technical or Both?
Hi guys, I read an article somewhere before which states that fundamentals doesn't affect short term trading and a few higher time frame traders (1 hour, 4 hours, daily chart. . .etc) trade exclusively on technical and has achieve great success? And vice versa, a few only trade only based on fundamentals and have good success also.
Is it feasible to just trade based on technical or only entirely on fundamentals or can it be better to have ?
Hi guys, I read an article somewhere before which states that fundamentals doesn't affect short term trading They can, and in some quite dramatic ways - as many men and women who have attempted trading at times of major economic statements have discovered to their cost.
Is it possible to only trade based on technical or only entirely on fundamentals or is it better to have ? It's likely to trade profitably only on fundamentals.
It's likely to trade profitably nearly exclusively on technical analysis, but with comprehension of the time of economic statements etc., so as to avoid trading at these few highly dangerous instances when fundamentals can temporarily conquer all technical analysis parameters.
There's but 1 market, 1 time frame.
People attempt to cut it to pieces or sectors, that don't exist
some conversation of time frames like they were unrelated and independent, to me that is absurd.
Technicals are king, fundamentals are king I hear both decks, their point of view, and reasoning for their taste on either is specious.
If you buy the euro/usd that you ipso facto have a position today, not on a different one moment, tick, monthly or daily chart not on fundamental currency or technical currency....it is one as well as, you bought x euros at y price. period.
Do that experiment, generate a chart of your earnings, or expenses. You may see some changes, yes a few instances you spend more than twice per pay period, and that will be represented on the chart. Can you forecast how much you'll spend by utilizing your chart....yes into an extend it reveals objectively the influx of money and spending habits. Can you forecast that a bonus will affect your cost chart....yes into an extend you can forecast that fluctuations in cash flow will alter your habits.
Today you lose your job....they equally fail. There was not any way you could have predicted that....to a certain extent there are factors that could have been foreseeable had you known your companies health, etc.. . .but some matters are simply arbitrary.
That is my rough hypothesis on the topic, so to answer your query, to exchange solely on one would be to be blinded. Fundamental factors affect the economic situation, the reasons for money flow, technicals are laid out as a record of money flow. By the way time frames are only measure of movement of the money flow by x quantity of time.
I like to both Fundamentals and Technical. Because Fundamentals and Technical separately didn't work well for me. So today I am preferring to both.
I like to Fundamentals and Technical. Because Fundamentals and Technical separately didn't work for me personally. So now I am preferring to both. Everyone I talk to says that trading fundamentals in FX will kill you.
Everybody I speak to says that trading fundamentals in FX will kill you. Can you share motive behind it. Why people say it will kill me?
Hi guys, I read an article somewhere before which says that fundamentals does not affect short term trading and some greater time frame traders (1 hour, 4 hours, daily chart. . .etc) trade solely on specialized and has reach great success? And some just commerce based on fundamentals and also have success also.
Is it feasible to simply trade based on specialized or just entirely on fundamentals or can it be better to have ? I think that the overall trend is basically influenced by the fundamental events. On the other hand, the financial market don't always go along with the fundamental situation. We've seen the stocks rising despite the debt problem of nations that were important. In the short-term, I feel it's a blend of technical and the moves of this institutional. Obviously, surprising news or astrophe is going to have the highest effect on the market.
I believe the overall tendency is basically affected by the fundamental events. On the other hand, the monetary market do not always go together with the fundamental circumstance. We've seen the stocks rising despite the debt issue of important countries. In the short term, I feel it's a combination of technical and the motions of this institutional. Evidently, unexpected news or disaster is going to have the effect on the market. I'm completely agree with your this sentence unexpected news or disaster is going to have the maximum effect on the market. When Financial credit of America went down then market suddenly visit earth. It shows that unexpected news put highest influence on market.
I trade very long term based almost completely on technicals - when I enter a trade my aim is to stay in it for 6 weeks to a year or two longer and ch major tendencies. I only utilize fundamentals very sparingly to choose the best pair to exchange if USD/JPY and EUR/JPY have exactly the same technical traits I look for but I only want to exchange one, I will use fundamental analysis as a final resort to select one over the other.
Is it feasible to only trade based on technical or only solely on fundamentals or is it better to have both? Sure it is possible. But you have an increased chance of getting screwed. Trade math, overlook high-impact news, and you're out. Trade fundamentals, overlook a massive momentum movement, and you're dead.
I always go with specialized in Metals,energies bullions, but occasionally go with fundamentals in Agro commodities, with repecting stoploss.
Sure it's possible. However, you have an increased chance of being screwed. Trade math, overlook high-impact news, and you are out. Trade fundamentals, overlook a massive momentum move, and you are dead. Imagine if your massive momentum move as you put it was as a consequence of a last break of a specialized degree after the accumulation of orders and not because of news at all. It disturbs me how news stations are almost always clever after the event, it happens often it's laughable.
The previous poster, Numbnuts put it very well indeed. Tech traders may utilize weekly and monthly charts to predict price moves way ahead of the news has caught up LOL.
I trade technicals mostly but foundation longer tern trend developments on Fundamentals. Mostly this is because technicals are somewhat more mathematical and I can understand them over Fundamentals at this point. I'm making it a point to learn more about fundamentals of these pairs I trade, because to dismiss them sounds like missing a huge part of the puzzlegame.
Trading mostly the 15 min chart I will not trade in case a fundamental report is on account of that currency pair which has a lot of influence, for at least 4 hours after the report is published. There's a lot of short-term plogical trading on strong fundamentals and for me personally just to risky. Sure I miss a lot of short term gains but I also don't have any big losses.
Appears to me that lots of fundamentals play-out over the long run in a more predictable way and influence individuals in a more plogical way than technicals do.
Fundamentals is good during the time of news release, at least gt; 20-50 pips movement. Aside from that, I think the trend follow quite near technical analysis. .
This question comes up fairly often on numerous fora. My own view is that most types of trading could be made to work, as there seem to be successful traders who trade nearly exclusively based on fundamental analysis, and others who trade exclusively technical.
Personally, I'm a mostly technical trader, as following backtesting I feel that that is the most predictable approach to the market. For my high TF trading - Daily TF and up - I basically tune out the fundamentals and take only technical setups. Over time, these pay out far more frequently than not.
For my intraday trading, I'm careful not to enter a trade right ahead of a major news announcement , and I do not trade NFP, but my reason for being at the trade is still purely technical.
Basically, technical analysis will give me a reason to put in a trade, although I won't ever enter a trade for fundamental reasons. I could, however, within my intraday trading, dismiss a good technical setup due to a fundamental issue.
Bottom line is, even if I ditched all fundamental analysis and stuck into strictly technical, I'd still be profitable. If I were to ditch the TA in favour of fundamental analysis I'd make heavy losses. But that's just mepersonally, I trade a technical system, so that I am sure there are others who make other things work. There are many approaches to Forex trading.
ST
I am inclined to exchange with Technical, however, there are traders who trade based on news trading (can this be egorized as fundamental?) , though they would used technical to determine exit and the entrance .
More significant beyond technical and fundamental, Money management is more significant, including determining your stop loss point and risk per transaction. As in each transaction There's a likelihood of winning / Losing, maintaining your funds to ensure You'd be able to ch the next trade is most important
I too still studying, Good Trading for us All
Cheers
It depends on your trading method. There is euro debt crisis, central bank interventions, economic news release, and a lot more fundamentals. You can definitely use those extra info to give you an advantage if you use it right.
Charts provide a fantastic picture of price movement. . Dimension of the behaviour of traders.
I only used technicals at the start and then once I started narrowing down my entries based on fundamental events it has helped.
Political rumors nowadays can alter the markets and can be quite annoying if your on the other side of the trade. Use appropriate leverage and never get anxious just to trade.
Both fundamentals and technicals matter, don't have any doubt.
As an example, I work in the grain sector for a broker for bodily grain, and see this play out all the time.
For instance, fundamental image can be very bearish, i.e huge grain stocks. But, as a result of over-commnt of traders because of physical delivery, it often happens that there is a huge squize on the longs, as farmers realize that there is big demand for nearby shipping, and start increasing prices to make the most. This is a technical correction, in nature short term supply/demand imbalance. Following these longs have covered their positions, the market will begin falling .
Rgrds...
Fundamentals and technicals are essential, but there's a third pillar - opinion analysis. This is really where Commnts of Traders (COT) reports arrive in. This informs us about the market sentiment of crucial market components. A huge broker lets opinion analysis by posting complete open positions and complete receptive orders of its clients for the major currency pairs onto its website. Useful tool, I would say!
Basics are important but we need to try to introduce more new stuff here in this market) more egies - more opportunities)
Hello guys, I read a post somewhere before which states that fundamentals doesn't affect short-term trading and a few higher time frame traders (1 hour, 4 hours, daily chart. . .etc) trade solely on specialized and has achieve great success? And vice versa, a few just commerce only based on fundamentals and have good success also.
Is it feasible to just trade based on specialized or just solely on fundamentals or can it be better to own both? Some people would just recommend to exchange off pure technical. Other people would just urge fundamental analysis. Although, with Currency Market you'll discover a lot more technical analysts compared to fundamental traders.
With stock traders it is possible to discover a lot more fundamental analysts as there are countless thousands of stocks to analyze. With Currency Market you will find just 10-20 distinct currencies greatest. Which is why people on the forums are big on the technicals as well as the charts.
In reality the market does not care about technicals or fundamentals. It cares about that which generates orders and trade flow.
Which is why if you would like to mesh the technical/fundamental analysis together, or go find something new which can be more insightful and refreshing, then I would recommend order flow trading and global macro trading.
For there are instances when technicals neglect, and instances when fundamentals fail. But order flow and liquidity not neglect.
What's traders rethink of the market environment and their particular trade arrangements.
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