Fundamental vs. Technical

[oraclewizard77]

Fundamental can work if as noted you are going to be in the market long term and have enough money to hold. Buffet can make money doing this because he can put a $ 5 billion into a Forex account and use no leverage.

Technicals give you a probability of success. Most who don't understand them will say that they don't work since you will have losing trades, however I can easily prove that they work over the long term since my system has been making real money for over a year using them.

I do know of one short term fundamental trade but it only works a few times per month.

 

[drasfs]

Quote from Batman28:

it depends what your strengths are and what approach u like taking toward the market. but b4 you start on ANYTHING you should get a copy of Security analysis - Graham and Dodd. & anything covering all basic indicators like Atlas of Economic Indicators - Carnes n slifer is good for beginners..

But isnt security analysis more about the stock market and investing in general?

Didnt find anything when i looked for n slifer....

Ive just done macroeconomics courses, hoping it would give something useful, but it didnt and im starting to get anxious. I just would like to be able to make a comprehensive fundamental analysis on " the currency market". But I really dont know where to look.

 

[cabletrader]

Quote from Me_Lefty:

I see that you prefer technical more. Is that because u have more experience with technical? Did u ever looked into fundamentals?
Just want to see your opinion

Before the explosion of online trading platforms, margin trading, and free charting packages fundamentals were all I had to go on, charts and technical analysis weren't an option (well not for me anyway, if they existed I didn't know about it!). I did ok with the very basic knowledge and understanding I had at the time, but I think it was more luck than judgement.

As time went on and I learned a bit more and compared technicals to fundamentals I found fundamentals to be way too volatile, economic conditions and spin change so very rapidly. A couple of words of rhetoric from the likes of Greenspan, an unexpected data release, or geopolitical event had dollar sentiment reeling, it still does.

Being honest I simply couldn't keep up, and listening and reading recognized and respected economists comments on their outlook, the divergence of opinion, well that convinced me that even if I gained years of experience fundamentals were just subjective opinion and nothing more, there seemed to be as many arguments for dollar strength as dollar weakness or for rate hikes as rate cuts! Depending on who presented the most plausible and convincing argument would decide which side of the dollar fence I was going to be on.

Discovering technical analysis was like an oasis in the desert for me, it's much more clearly defined. Fundamentals and rhetoric still send the market into a spin, yet technical levels offer that bit of clarity in all the chaos, well they do for me anyway.

 

[cabletrader]

Quote from DrEvil:

As I recall, in Market Wizards it was shown that the most successful traders use fundamentals exclusively, technicals exclusively or they combine fundamentals and technicals. In other words, fundamentals and technicals are merely tools, which in the hands of a GOOD trader can be used to great effect.

I absolutely agree, tools are only as good as the person using them.

 

[Me_Lefty]

Quote from cabletrader:

Fundamentals and rhetoric still send the market into a spin, yet technical levels offer that bit of clarity in all the chaos

This is very interesting to here your opinion. Thanks!

Person that showed me forex is student he trades on news releases, basically 0-15 minutes after the major news release and makes 15-20 pips in a day that he trades. He trades most 3 days per week. After looking at his trading for a few days i should say he is pretty much successful with his trading.

 

[cabletrader]

Quote from Me_Lefty:

This is very interesting to here your opinion. Thanks!

Person that showed me forex is student he trades on news releases, basically 0-15 minutes after the major news release and makes 15-20 pips in a day that he trades. He trades most 3 days per week. After looking at his trading for a few days i should say he is pretty much successful with his trading.

I think you're talking about something completely different now, he's scalping the immediate kneejerk reaction to data as it's released. It works on occasions and we've probably all done it and breathed a sigh of relief if we made a few bucks, but I wouldn't really call that trading fundamentals. There are lots of issues associated with trading news, I'm not convinced a strategy like that is sustainable.

But then again who am I to say, if he's consistently making money then it works obviously.

It would seem a shame to waste a perfectly good (not to mention expensive!) education and economics degree on lucky scalping!

 

[Me_Lefty]

Does anybody ever used MB Trading platform? It has 1 pip spread and $5 commission on $100,000 lot