Does a day trader need fundamental analysis to succeed? | Forex Factory

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Does a day trader need fundamental analysis to succeed?

  • #1
  • First Post: Feb 17, 2022 2:17pm Feb 17, 2022 2:17pm
As a day trader using TA to analyze my trades, and i mostly trade on 15m and H1 time frames, do i need fundamental analysis to succeed. Thanks.
  • #2
  • Feb 17, 2022 10:37pm Feb 17, 2022 10:37pm
Quoting omanogu
As a day trader using TA to analyze my trades, and i mostly trade on 15m and H1 time frames, do i need fundamental analysis to succeed. Thanks.
No, it’s information overload that will make you doubt your TA setups.
Put blinkers on, concentrate on why you are taking the trade in the first place and just execute your strategy.

After all, you are a TA trader.
Trading thin liquidity at the boundary of the charts
  • #3
  • Feb 17, 2022 10:45pm Feb 17, 2022 10:45pm
Hey, RickM....

How have you Been, Sir.....

Enjoy your Posts....
  • #4
  • Feb 17, 2022 11:29pm Feb 17, 2022 11:29pm
Quoting omanogu
As a day trader using TA to analyze my trades, and i mostly trade on 15m and H1 time frames, do i need fundamental analysis to succeed. Thanks.
To the extent that the "fundamental analysis" would determine your trades...no. However, that certain fundamental data are coming across the wires... absolutely. These news announcements have a profound and immediate effect on price movements long before any technical analysis 'signal' comes up in your hourly charts...and by then it's too late to do anything about it.

It is important (IMHO) that you are aware of any upcoming and recently released fundamental announcements during your trading window AND that you understand what effect these results might have on your position(s). To truly understand this will require that you study the economics behind these announcements and have at least a working knowledge of the environmental and economic impact they have.
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  • #5
  • Feb 18, 2022 1:43am Feb 18, 2022 1:43am
Quoting RickM
{quote} No, it’s information overload that will make you doubt your TA setups. Put blinkers on, concentrate on why you are taking the trade in the first place and just execute your strategy. After all, you are a TA trader.
Well said. Thanks so much @RickM.
  • #6
  • Feb 18, 2022 1:57am Feb 18, 2022 1:57am
Quoting DonPato
{quote} To the extent that the "fundamental analysis" would determine your trades...no. However, that certain fundamental data are coming across the wires... absolutely. These news announcements have a profound and immediate effect on price movements long before any technical analysis 'signal' comes up in your hourly charts...and by then it's too late to do anything about it. It is important (IMHO) that you are aware of any upcoming and recently released fundamental announcements during your trading window AND that you understand what effect these...
What i do as regards to news announcements is that i close any open position if a high impact news is about to be released, that affects the currency pair I'm trading in. As they say price is the leading indicator, i just follow what the price is tell me as reflected in the candlesticks. Thanks for your response.
  • #7
  • Feb 18, 2022 2:06am Feb 18, 2022 2:06am
Day trader on M15 and H1 - no.
You just have to know when macro data is released (NFP, CPI, CCI, interest rates), speeches are held (FED, FOMC, ECB, BOE etc) and act accordingly not to get wiped out of your positions.

Fundamentals are needed in case of a long term investment and rather in stock market; know your stock and know the sector, know the economy.
Also on futures - wheat, copper, coffee etc - you need fundamentals on long term trades.
Markets will move to the right.
  • #8
  • Feb 18, 2022 2:18am Feb 18, 2022 2:18am
as the other posters said, it's good to be aware of the big news releases whilst you're in the market but it's by no means make-or-break if you don't do fundamental "analysis." often times, news releases move the market further along its line of least-resistance anyway. you're a TA trader; stick to what you know & do best. in my experience, the more fat you can trim from your system, the better off you'll be
  • #9
  • Feb 18, 2022 9:59am Feb 18, 2022 9:59am
Quoting FraterRedox
Day trader on M15 and H1 - no. You just have to know when macro data is released (NFP, CPI, CCI, interest rates), speeches are held (FED, FOMC, ECB, BOE etc) and act accordingly not to get wiped out of your positions. Fundamentals are needed in case of a long term investment and rather in stock market; know your stock and know the sector, know the economy. Also on futures - wheat, copper, coffee etc - you need fundamentals on long term trades.
Some mentors almost got me confused, Perfectly said. Thanks.
  • #10
  • Feb 18, 2022 1:17pm Feb 18, 2022 1:17pm
Does a trader "need" fundamental analysis: No, at least not in the sense that "it's mandatory or else he won't succeed". It's actually the same answer as any approach to the markets: Does a trader NEED method ABC to the market? no. But CAN he use method ABC to the market? Yes, if it makes sense to him and he can utilize it profitably.

So, in regards to fundamentals, no you don't need it, but you can absolutely use it. As a previous comment pointed out, the higher the TF used, the more FA becomes impactful (imo).
  • #11
  • Feb 18, 2022 9:09pm Feb 18, 2022 9:09pm
y think a trader must watch what big players do .by simply puting trades based on cot report week by week in 2021 gbp/yen totalized 3507 point with initial drawdown of 90 points
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  • #12
  • Feb 18, 2022 9:42pm Feb 18, 2022 9:42pm
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  • #13
  • Feb 19, 2022 12:55am Feb 19, 2022 12:55am
Quoting Oliver.Twist
Does a trader "need" fundamental analysis: No, at least not in the sense that "it's mandatory or else he won't succeed". It's actually the same answer as any approach to the markets: Does a trader NEED method ABC to the market? no. But CAN he use method ABC to the market? Yes, if it makes sense to him and he can utilize it profitably. So, in regards to fundamentals, no you don't need it, but you can absolutely use it. As a previous comment pointed out, the higher the TF used, the more FA becomes impactful (imo).
I tried to use it in my TA analysis and i discovered that in the short term price doesn't follow FA. Thanks.
  • #14
  • Last Post: May 2, 2022 9:52pm May 2, 2022 9:52pm
Quoting RickM
{quote} No, it’s information overload that will make you doubt your TA setups. Put blinkers on, concentrate on why you are taking the trade in the first place and just execute your strategy. After all, you are a TA trader.
Good Day What EAs and Indicators can we use for trading News and Events and catching those highly volatile moves during such events like NFP, Interest rates , Unemployment and day to day economic announcements ?
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