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Fundamental or Technical- novice traders should start with?

TraderRon (TraderRon)
Apr 18 2018 at 19:49
14 Beiträge
technical analysis is really easier to understand. But without a fundamental analysis, it will be difficult to understand the behavior of the market. All movements in the market are caused by the reaction of other participants. All movements can be caused by some or other macroeconomic events. You can not just be limited to technical or fundamental analysis.

Gorh
May 01 2018 at 10:02
16 Beiträge
snapdragon1970 posted:
Cloudballs posted:
snapdragon1970 posted:
80% fundamental,20% technical this is what professional hedge funds use,price needs a reason to move, very little to do with technical's ,confirmation and entry point come a second.


Wow, is that really true? I have been 100% technical and have ignored fundamental until now. What about short term trading? Still need fundamental for that?


Professionals don't stare at the screen all day long looking for a technical setup,why should you,just not the way the market works, As Traders we need something to push the price around otherwise its mostly noise intraday especially on the majors, If your scalping on 1 min time frames not much need for fundamentals:)
 


What about news trading within several minutes duration movements. You should to be up to date with information about politics and macroeconomics to forecast probably movements.

snapdragon1970 (snapdragon1970)
May 01 2018 at 20:52
1944 Beiträge
Gorh posted:
snapdragon1970 posted:
Cloudballs posted:
snapdragon1970 posted:
80% fundamental,20% technical this is what professional hedge funds use,price needs a reason to move, very little to do with technical's ,confirmation and entry point come a second.


Wow, is that really true? I have been 100% technical and have ignored fundamental until now. What about short term trading? Still need fundamental for that?


Professionals don't stare at the screen all day long looking for a technical setup,why should you,just not the way the market works, As Traders we need something to push the price around otherwise its mostly noise intraday especially on the majors, If your scalping on 1 min time frames not much need for fundamentals:)
 


What about news trading within several minutes duration movements. You should to be up to date with information about politics and macroeconomics to forecast probably movements.


Most news events are priced in before hand ,unless the market is caught totally wrong footed ,but we normally get leaks and speculation so the market doesn't freak out,unless you can stomach whipsaw best to sit it out.

"They mistook leverage with genius".
SwapTrader
May 02 2018 at 06:00
24 Beiträge
Technical and fundamental analysis have evolved from, and are perfect for, share markets, commodities, and related derivatives, but when applied to the Forex market they simply don't work that well.

The Forex market is entirely different from shares and commodities trading, and it exists for entirely different reasons. Speculators make up a tiny proportion of the Forex market. Retail traders like you and me represent just 4% of the market volume. Major hedge funds account for only 14%. So, 82% of the market is not the slightest bit interested in prices, or price directions, or any of those fancy technical squiggles and lines on a price chart. That means the people and/or institutions making those trades are not doing so for the same reasons as you and me. Businesses trade internationally and must settle transactions in foreign exchange regardless of price direction. International travelers exchange currencies daily because they need to, and not because a moving average crossover occurs or interest rates rise in Japan. This makes the Forex market an extremely random one, more so than almost every other market.

If you really want to profit from Forex, forget technical and/or fundamental analysis, and focus instead on currency strength/weakness analysis. Don't simply compare the AUD with the USD when contemplating a trade position. Instead, compare the AUD with the USD, JPY, CAD, NZD, GBP, EUR, and CHF, to determine if the AUD is universally strong or weak. If it's strong, pair it with the weakest and buy. If it's weak, pair it with the strongest and sell. Watch the difference this makes to your trading results.

agressiveFX
agressiveFX (agressiveFX)
May 02 2018 at 06:01
2 Beiträge
As a long time Crypto trader I can tell you most people who use Technical Analysis are not successful. I'm 2 month into Forex and been killing it so far. Check my profile for proof

Adribaasmet
May 02 2018 at 12:01
937 Beiträge
agressiveFX posted:
As a long time Crypto trader I can tell you most people who use Technical Analysis are not successful. I'm 2 month into Forex and been killing it so far. Check my profile for proof


Interesting, are you trade on only crypto? May I know your view on BTC/USD (long term)?

maria_taylor
May 08 2018 at 11:28
40 Beiträge
In Forex trading both fundamentals and technical are equally important. Depending on only one factor can result in a more risky trading. fundamentals give an idea about the market movement and a good knowledge of technical is helpful in finding the right time of entry and exit in the market.

HankyPanky
May 10 2018 at 12:06
8 Beiträge
I take fundamental very seriously. There can be a lot of information but it really helps give longer term direction

maria_taylor
May 18 2018 at 08:07
40 Beiträge
HankyPanky posted:
I take fundamental very seriously. There can be a lot of information but it really helps give longer term direction

Absolutely true! Fundamentals are really helpful for the direction in long term, but you can't completely neglect technical. For how long you have been trading?

maria_taylor
May 28 2018 at 07:56
40 Beiträge
togr posted:
You cannot separate technical and fundamental analysis.
I suggest to focus on technical and use at least a bit of fundamental to avoid major economic news and counter trend trading.

Exactly, only using both technical as well as fundamentals will result in profitable trades.

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