Fundamentals Are Irrelevant In Most Cases

[Fundlord]

European GDP YOY beat estimate of 1% coming out as 1.1%

US CPI YOY expected at -0.1% came out worse as -0.2%

But the dollar rallied against most of the major currencies, I don't see how people could rely trading on data or even guessing on this data and making money ?

Its like poker when you get a straight flush but someone tells you lose to the guy who had a pair of 2s.

 

[qxr1011]

I would say that fundamentals are relevant in all cases, it just the degree of relevancy fluctuates.

 

[Buy1Sell2]

I would say that fundamentals are relevant in all cases, it just the degree of relevancy fluctuates.

This is incorrect. One need never pay attention to fundamentals to trade successfully. On the other hand, they are useful for long term investing like a 401k'er would do.

 

[Buy1Sell2]

European GDP YOY beat estimate of 1% coming out as 1.1%

US CPI YOY expected at -0.1% came out worse as -0.2%

But the dollar rallied against most of the major currencies, I don't see how people could rely trading on data or even guessing on this data and making money ?

Its like poker when you get a straight flush but someone tells you lose to the guy who had a pair of 2s.

Disregard fundamentals when trading. Disregard news when trading. --Only look at charts.

 

[qxr1011]

the speech was about relevancy , not about about to use it or not

 

[tortoise]

European GDP YOY beat estimate of 1% coming out as 1.1%

US CPI YOY expected at -0.1% came out worse as -0.2%

But the dollar rallied against most of the major currencies, I don't see how people could rely trading on data or even guessing on this data and making money ?

Its like poker when you get a straight flush but someone tells you lose to the guy who had a pair of 2s.

It is poker, but the rules of the game are constantly shifting. A straight flush may once have been the winning hand. Now it's a pair of twos. In the future, it might be some other combination.

 

[Fundlord]

Disregard fundamentals when trading. Disregard news when trading. --Only look at charts.

Yup, I have been clouded by a lot of folk hear saying that charts are BS etc.

I had sizeable shorts on USD/JPY, GBP/USD, EUR,USD I closed them out at a profit based on charts. Had listened to the data and thought the position would go in more in my favour I would have lost.

 

[Buy1Sell2]

Yup, I have been clouded by a lot of folk hear saying that charts are BS etc.

I had sizeable shorts on USD/JPY, GBP/USD, EUR,USD I closed them out at a profit based on charts. Had listened to the data and thought the position would go in more in my favour I would have lost.

I'll give you a classic example. Just before the most recent upswing in british pound, several analysts were touting news as being bearish for cable. It may be in the long term, but the immediate effect was an 800 pip rise in gbp.

 

[NoVoodooHere]

European GDP YOY beat estimate of 1% coming out as 1.1%

US CPI YOY expected at -0.1% came out worse as -0.2%

But the dollar rallied against most of the major currencies, I don't see how people could rely trading on data or even guessing on this data and making money ?

Its like poker when you get a straight flush but someone tells you lose to the guy who had a pair of 2s.

Depends on your time horizon