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Is Fundamental Analysis Really Useful For Forex Trading?

  • #41
  • Feb 22, 2019 9:21am Feb 22, 2019 9:21am
any trading analysis is important but most important is fundamental particularly when it is time to news , fundamental analysis to acquire is a tough issue and need a long time , for that reason we the traders above all newcomers fail to interest and move on technical analysis for trading successfully.
  • #42
  • Feb 23, 2019 3:14pm Feb 23, 2019 3:14pm
Quoting BenDunk
any trading analysis is important but most important is fundamental particularly when it is time to news , fundamental analysis to acquire is a tough issue and need a long time , for that reason we the traders above all newcomers fail to interest and move on technical analysis for trading successfully.
By the time the news is out it is old news already, you can never know if the market has already discounted that information, probably has. Just check the news releases and go back to the charts and you will see several cases where the market didn't even care.

Your best bet is to learn how to interpret the COT report and then follow the smart money, they are the ones who move the market. Those are the guys with deep pockets, access to all fundamental information before you, they are the ones who act on that and move the markets, you just need to follow them. They are the ones with teams of analysts and economists crunching data and insider data, you can't compete with that, just follow their lead.

Instead of trading news, wait for the reaction. Usually if the market is an uptrend, and the news is bad, wait for the dip and then buy it, do the opposite in bear markets (good news on downtrend, sell the rally after the news, if there is any).
  • #43
  • Feb 23, 2019 8:58pm Feb 23, 2019 8:58pm
Use TA for entries and exits, use FA for direction.

Someone told me that; not saying it works, but well..
Christabelle means beautiful. I'm here to chit-chat and eat cotton candy.
  • #44
  • Feb 24, 2019 2:40am Feb 24, 2019 2:40am
Quoting BenDunk
any trading analysis is important but most important is fundamental particularly when it is time to news , fundamental analysis to acquire is a tough issue and need a long time , for that reason we the traders above all newcomers fail to interest and move on technical analysis for trading successfully.
agree , fundamental analysis is a complicated issue for newcomers , by the way news trading is more complicated than any situation in Forex trading , as a newcomer i lost vast of amount during news , so it is more appropriate to avoid news trading as a new trader for avoiding unfortunate losses and risk.
  • #45
  • Feb 24, 2019 7:43am Feb 24, 2019 7:43am
Quoting Pickles
Use TA for entries and exits, use FA for direction. Someone told me that; not saying it works, but well..
You can open a monthly or weekly chart and clearly see the direction of the long term trend in a couple of seconds, why would you waste hours and hours to reach the same conclusion? Even easier with a long term TPO chart and Point and Figure.

Unless you are in the mood to give yourself a headache and waste time.
  • #46
  • Feb 24, 2019 11:17am Feb 24, 2019 11:17am
I can not really very important when you are in the usual trade since it is news and sentiments that form the basis of your macro, then all you need to do is to add the other bits. Fundamental analysis works best in Swing trading. Just figure out the market sentiment for the day and trade when it is clear
  • #47
  • Feb 25, 2019 6:49am Feb 25, 2019 6:49am
Quoting Eredribaen
I can not really very important when you are in the usual trade since it is news and sentiments that form the basis of your macro, then all you need to do is to add the other bits. Fundamental analysis works best in Swing trading. Just figure out the market sentiment for the day and trade when it is clear
But during the high voltage news session; there is no way with technical analysis; so better to avoid thse kinds of high voltage trading sessions.
  • #48
  • Feb 25, 2019 10:54am Feb 25, 2019 10:54am
Quoting ZikriIrfan
{quote} But during the high voltage news session; there is no way with technical analysis; so better to avoid thse kinds of high voltage trading sessions.
I tried trading news like that when I was a newbie and I had a few very unpleasant experiences. Since then I have been avoiding them altogether and I am better off.
  • #49
  • Feb 25, 2019 11:34pm Feb 25, 2019 11:34pm
Soros would tell you fundamentals effect technicals but technicals can also influence fundamentals
  • #50
  • Feb 26, 2019 1:36am Feb 26, 2019 1:36am
Quoting mlawson71
{quote} I tried trading news like that when I was a newbie and I had a few very unpleasant experiences. Since then I have been avoiding them altogether and I am better off.
Same experience too, mate! Sometimes profit & sometimes loss; so better to avoid and waiting for normal behavior.
  • #51
  • Feb 26, 2019 10:01am Feb 26, 2019 10:01am
Quoting ZikriIrfan
{quote} Same experience too, mate! Sometimes profit & sometimes loss; so better to avoid and waiting for normal behavior.
I don't think that the market is ever fully normal, but let's just say that I wait for behaviour that I understand and can analyze.
  • #52
  • Feb 27, 2019 1:57am Feb 27, 2019 1:57am
Quoting mlawson71
{quote} I don't think that the market is ever fully normal, but let's just say that I wait for behaviour that I understand and can analyze.
Mate, normal means not heavy bounce like FOMC news time; I always try to avoid crazy news sessions.
  • #53
  • Feb 27, 2019 9:17am Feb 27, 2019 9:17am
Quoting ZikriIrfan
{quote} Mate, normal means not heavy bounce like FOMC news time; I always try to avoid crazy news sessions.
Sometimes there are black swan events that aren't scheduled at all and they can really mess up a trader's account if they don't always have stop loss in place.
  • #54
  • Feb 28, 2019 1:40am Feb 28, 2019 1:40am
Quoting mlawson71
{quote} Sometimes there are black swan events that aren't scheduled at all and they can really mess up a trader's account if they don't always have stop loss in place.
Exactly and that’s why we traders need to consider money management as serious as possible.
  • #55
  • Feb 28, 2019 11:46am Feb 28, 2019 11:46am
Quoting ZikriIrfan
{quote} Exactly and that’s why we traders need to consider money management as serious as possible.
What money management advice would you give?
  • #56
  • Mar 1, 2019 12:44am Mar 1, 2019 12:44am
we all have money management when trading practically, but only experience money management can help to avoid unfortunate risk and losses, and experience MM comes from only consistence practice. so we should increase our practice level.
  • #57
  • Apr 5, 2019 6:02am Apr 5, 2019 6:02am
fundamental analysis is hard to acquire but its result can bring profit for a long time , technical analysis is just for short time.
  • #58
  • Jan 7, 2020 7:29pm Jan 7, 2020 7:29pm
Quoting Gauer
Hi there, I just finished watching a course by Anton Kreil called "Professional FOREX Trading Masterclass", the course is mostly focused on fundamental analysis (80%) using spreadsheets and govt data to form a bias. I thought it was interesting because he uses a scorecard system to give points to each section of the fundamental analysis (endogenous and exogenous), giving it a "technical feel", I always thought of fundamental analysis being very subjective. On the other hand, forming a bias before sitting down to trade is not advisable, at least...
I'm going through the course myself. So all in all this was a useless system from the get go, Gauer?
  • #59
  • Jan 12, 2020 4:12pm Jan 12, 2020 4:12pm
I think one needs experience, learn the basics of WHY price moves...

Yes it's fundamental, but also HOW/WHY/WHEN the big liars (banks) move the price.
So it's big part psychological.
Retail versus Market Makers.

It's not just news, not just lines...
Beware of robber banks (RB), bad advisors.
  • #60
  • Mar 20, 2020 8:04am Mar 20, 2020 8:04am
Quoting Alexandrize
{quote} I'm going through the course myself. So all in all this was a useless system from the get go, Gauer?
Yes don´t waste your precious time.
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