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Is Fundamental Analysis Really Useful For Forex Trading?

  • #21
  • Jan 29, 2019 10:45am Jan 29, 2019 10:45am
Quoting GeorgeBaile
{quote} Same experience; although I didn’t use this service! But I guess almost all of the paid courses are not much meaningful as they promised.
I am sure there are some courses which some people have found useful, but I too don't prefer using them either.
  • #22
  • Jan 30, 2019 3:55am Jan 30, 2019 3:55am
Quoting mlawson71
{quote} I am sure there are some courses which some people have found useful, but I too don't prefer using them either.
Yes; because so called paid services are here & there! So, it’s really difficult to find out the useful coerces.
  • #23
  • Jan 30, 2019 10:10am Jan 30, 2019 10:10am
Quoting GeorgeBaile
{quote} Yes; because so called paid services are here & there! So, it’s really difficult to find out the useful coerces.
My first question when it comes to such courses is "Why are you bothering to deal with people when you can use that knowledge to make money for yourself?"
  • #24
  • Jan 31, 2019 7:33pm Jan 31, 2019 7:33pm
I think what matters most in trading is the underlying logic that makes your trade a winner. The logic must be nice and clear. For instance, the logic behind triangular arbitrage is clear and grounded. If some fundamental information provides you reasonable logic, i think it's useful.
  • #25
  • Feb 1, 2019 8:23am Feb 1, 2019 8:23am
I also think that fundamental analysis is very subjective, however, that's all info that surrounds us and it influences the events undoubtedly, but the outcome is hard to guess, however, some things can be quite obvious. Well, it depends.
To be honest, I do not really understand technical analysis. I mean I don't really get the way they are created and, I know, they are also not always meant to come true, are they?
  • #26
  • Feb 1, 2019 10:06am Feb 1, 2019 10:06am
Regarding the original question, I think it depends on the person. Some people trade almost entirely based on fundamental analysis. It's not something I do or have much interest in doing, but to each their own.
  • #27
  • Feb 2, 2019 1:46am Feb 2, 2019 1:46am
Quoting mlawson71
{quote} My first question when it comes to such courses is "Why are you bothering to deal with people when you can use that knowledge to make money for yourself?"
Logical; but there have few groups who are really want to help the new traders to learn Forex.
  • #28
  • Feb 2, 2019 8:37am Feb 2, 2019 8:37am
Quoting GeorgeBaile
{quote} Logical; but there have few groups who are really want to help the new traders to learn Forex.
I truly hope so. The thought that all such services are just out to get rich without actually helping anyone is very disheartening.
  • #29
  • Feb 9, 2019 6:59am Feb 9, 2019 6:59am
Hi guys,

After reading all the books I could find about fundamental analysis and watching a couple of courses, I came to the conclusion that fundamental analysis is not worth the colossal work required to provide practically no edge, at least for me. It is just information overload. Ironically, the last book that I read was the one that negated all the material I was studying so far... It only took one book, called: ``Sentiment in the Forex Market: Indicators and Strategies To Profit from Crowd Behavior and Market Extremes by Jamie Saetelle``

I thought that the book was about fundamental analysis when I grabbed it. In fact, the author does a really good job showing how economic releases, and I mean the main economic indicators used to do the FA (Fed Funds Rate, PPI, CPI, GDP, etc..), have absolutely no correlation with the DXY. He does that by overlaying the charts of the economic indicators on top of the DXY, going back years ago. Even though some economic news releases sometimes cause a knee jerk reaction in the markets, trying to trade based on that is dumb.

So, that is it for me, bye bye fundamental analysis. Well, at least I am not gonna use it for trading, I enjoyed knowing about how to analyze the economic situation of a country and the intrinsics of economy, but as a hobby, not to trade. Good brain gymnastics.
  • #30
  • Feb 9, 2019 8:48am Feb 9, 2019 8:48am
99% of you don't understand fundamentals let alone applying it for an edge. You really haven't got a clue what you are missing out on but go ahead and continue down the path of Xmas tree flashing lights squiggly lines, ratios, maths, bla bla bla. Whatever floats your boat or most likely sinks it.
  • #31
  • Feb 9, 2019 11:05am Feb 9, 2019 11:05am
Here are a few examples that debunk fundamental analysis. It is as worthless as looking at indicators that use price data only with no volume weighting. I think that a coin toss would have given better results than if you had used the economic indicators in those examples:
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  • #32
  • Edited 1:28pm Feb 9, 2019 1:06pm | Edited 1:28pm
Quoting Gauer
Here are a few examples that debunk fundamental analysis. It is as worthless as looking at indicators that use price data only with no volume weighting. I think that a coin toss would have given better results than if you had used the economic indicators in those examples: {image} {image} {image} {image} {image} {image} {image} {image}


All meaningless examples that do not reflect fundamentals. Your first error is using the dollar index because its based on a basket of currencies and you don't trade a basket you trade pairs. What you are doing is comparing an aggregate of different economies against the dollar and all this will show you is long term trends. What the Dow has to do with the dollar is really a mystery to me because its a different market and all you are showing is a correlation between the dow and an index based on a basket of currencies. (no correlation)

Your second problem is picking out individual economic indicators like cpi and nfp. The fed don't operate policy based on just cpi or nfp. In fact they have not been watching nfp for some time because employment isn't a concern for them and hence its lacklustre behavior compared to years ago. Right now they are concerned about inflation but not because its low or high but because it isn't growing so they stopped hiking rates. You can't just slap random economic data points against an index and look at is as though there is meant to be correlation there. Policy at central banks is based on varying factors and its an ever changing influence.

Sorry but based on what you have shown here it is abundantly clear that you don't know how to apply it which is why you have failed to make it work.
  • #33
  • Feb 9, 2019 2:07pm Feb 9, 2019 2:07pm
``meaningless``, right they are just showing that there is absolute no correlation between US economic indicators and the US dollar
  • #34
  • Feb 9, 2019 2:55pm Feb 9, 2019 2:55pm
Quoting Gauer
``meaningless``, right they are just showing that there is absolute no correlation between US economic indicators and the US dollar
Yep meaningless because you don't know what you are talking about
  • #35
  • Feb 9, 2019 4:02pm Feb 9, 2019 4:02pm
Quoting EcoTrader
{quote} Yep meaningless because you don't know what you are talking about
Yeah I do.
  • #36
  • Feb 9, 2019 4:08pm Feb 9, 2019 4:08pm
lol @ Ecotrader... Just as I imagined, just like the snake oil salesman, as soon as people ask proof of their records, they run!
  • #37
  • Feb 22, 2019 12:14am Feb 22, 2019 12:14am
Good day

I have a question for the more Senior Guys I would like to know how do I turn the Code someone posted into a indicator on MT4.
Please note there is no .ex4 or mq4 file oly code. I assume I would need to turn the code into one of these Formats.

Thanks

Rene
  • #38
  • Feb 22, 2019 3:24am Feb 22, 2019 3:24am
both analysis is important technical and fundamental , basically beginners level depend on technical analysis to ensure some profit , according to me, the result of technical analysis all about temporary , only fundamental analysis can bring profit for a long time but its a long term approach to be experienced.
  • #39
  • Feb 22, 2019 3:32am Feb 22, 2019 3:32am
Quoting mlawson71
Regarding the original question, I think it depends on the person. Some people trade almost entirely based on fundamental analysis. It's not something I do or have much interest in doing, but to each their own.
And some people trade entirely based on technical analysis So, if you do not have an interest in doing it, how do you usually deal with it then?
  • #40
  • Feb 22, 2019 8:39am Feb 22, 2019 8:39am
Quoting LanaBanana
{quote} And some people trade entirely based on technical analysis So, if you do not have an interest in doing it, how do you usually deal with it then?
You mean fundamental analysis? I know enough to be aware of which high impact events avoid during my trading and that's about it.
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