DislikedThere is a way technicals are 70% of trading (in ratio to FA). This is the same old tech vs. findi debate. And the debate always resolves as 'whatever suites you best and makes you the profit is the best for you.'
There are some traders that are pure PA and enter/exit with a surprising measure of accuracy and profit frequency. They still enter with great accuracy even when big news events are happening. It's about learning to read market participant interaction (bulls/bears) and it's all in the charts.
No matter what you choose; FA/MF/TA it...Ignored
It has to be clear by now that my interest as is the interest of PipTrapper who put in the work and effort starting on September 25, 2011 by starting this unique thread on Forex Factory, that we want to share and give something back and be helpful to others that join us here on this thread.
I have an advantage over most here since trading forex is how I earn my livelyhood and I also truly enjoy and love what I do.
I have great difficulties losing at anything. I know only based on the net results of my business that I have solved the mystery of trading forex and making money. I recently branched out to teaching how to trade forex with winning results.
When I see people who focus so much on technicals it frustrates me for them since I know they come up with the wrong bias and reach incorrect conclusions and can only lose money.
My main point using fundamentals along with my other tools is that to be a winner in the 5% group you need to use all the tools. If you focus on one or two you just cannot win in my opinion. That just seems to me based on my real experiences common sense.
Trading forex is more than looking at charts and price action. That surely does not give you any knowledge of what is going on.
A good example of that is what happened in the last hour or so.
We are all looking at the price of EUR/USD and things are quiet. Everyone has an opinion or in rare cases has no bias as they observe things. That is what I do in my trading style.
All of a sudden EUR/USD moves up. NOT ONE CHART IN THE WORLD COULD HAVE TOLD YOU THAT IT WOULD...
Something was happening. I saw it live by watching CNBC so it allowed me to understand. That gave me real knowledge of why it happened.
I then made a decision to consider shorting EUR/USD and I asked people who use charts where they saw resistance ahead of the commonly know resistance of 1.3180.
I am also AWARE as everyone SHOULD BE especially those that rely on charts or price action that at 8:30 AM there coild be a RISK EVENT !!!
What person that relies mainly on charts can know what it is and prepare for it just in case. That is the Preliminary GDP US number at 8:30 AM.
If it is over 3.00% the Market Will Go Crazy and GO UP !!!
If on the other hand it is below expectations by a lot then count on Risk to go off and the Dow will go down and so will the Euro.
By not wanting to try to learn and take the easy way out by counting mainly on charts you tie one of your hands behind your back. It just frustrates me that people would do that when the truth is made available here by myself and others.
I shorted one position of EUR/USD at 1.31375 at 5:26 AM and another at 1.3156 at 5:55 AM on a demo account that is being used to teach a friend how to trade and earn money. My STOP in case I had the wrong Trade Plan is 1.3185 and it is as simple as that. I really hope this post that I took the time to write is informative, useful and helps others here understand my goals by posting here.