I have been trading forex for the past 10 years. In the early years, I have attended many trading seminars, courses, read more than 100 technical analysis trading books. using technical analysis indicators in my trading such as Elliot waves, moving averages, stochastics, ....etc (anything you name it). Over the years, my perspective of trading have become more mature and less impulsive of making profits. I come to realize that trading is similar to profession like Law, Medicine, Accountancy which requires many years to training before you become a professional in the respective field. Even if you are equipped with the relevant knowledge, you still need many years of practice to hone your skill to the professional level.
How I wish someone can advise me in my early trading years that technical analysis only constitute less than 20% of what a aspiring trader need to know. The rest depends on risk management, trading personality, trading psychology. Even if you have equipped with the relevant knowledge, you still need months or even years of demo practice to hone your skill before you can become a confident trader.
Afterall, forex trading is a probability game. The more homework we do, the higher probabilty that the trade is in our favour. I have been reading FF forums for quite a number of years but I observe that most of the discussion are mainly about technical analysis. Fundamental analysis is a subject that is often ignore by many traders. Why is this so? Well, the former is taking the quantitative approach while the latter is an qualitative one which is more difficult to apply in trading and hard to grasp in terms of concept.
The reason why I am spending time to understand and apply Fundamental analysis in my trading is because I have come to realize that most of my profits tend to reverse in direction when news was announced. Since I tend to hold my positions for a few days to even a few weeks and months, it is important for me to know that market sentiments have not changed in a big way or opposite of my positions.
I will talk more in details about how I apply Fundamental Analysis in my trading later ........ Stay tune.
How I wish someone can advise me in my early trading years that technical analysis only constitute less than 20% of what a aspiring trader need to know. The rest depends on risk management, trading personality, trading psychology. Even if you have equipped with the relevant knowledge, you still need months or even years of demo practice to hone your skill before you can become a confident trader.
Afterall, forex trading is a probability game. The more homework we do, the higher probabilty that the trade is in our favour. I have been reading FF forums for quite a number of years but I observe that most of the discussion are mainly about technical analysis. Fundamental analysis is a subject that is often ignore by many traders. Why is this so? Well, the former is taking the quantitative approach while the latter is an qualitative one which is more difficult to apply in trading and hard to grasp in terms of concept.
The reason why I am spending time to understand and apply Fundamental analysis in my trading is because I have come to realize that most of my profits tend to reverse in direction when news was announced. Since I tend to hold my positions for a few days to even a few weeks and months, it is important for me to know that market sentiments have not changed in a big way or opposite of my positions.
I will talk more in details about how I apply Fundamental Analysis in my trading later ........ Stay tune.