Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

Fundamental Trading 6 replies

trading by fundamental & technical analysis 1 reply

Fundamental or technical trading 8 replies

Trading The News Or Fundamental Release 2 replies

fundamental trading 4 replies

Fundamental trading

Quoting mr.gardner

I think that only short term trading can be based on fundamental analysis. Remember this ; NEWS ARE NOISE / manipulation ! Stay out of the market when important economic data is released.

Quoting mr.gardner

Newbie crap ? hm.. take a look at the article below and then we can discuss again.

http://www.dailyfx.com/forex/educati...ket_Noise.html

HF
The article's crap as well, I can see plenty of trading opportunities on that chart, it's no different in that respect from any other time frame.

News is news, it can have a limited short-term knee-jerk reaction or it can change market sentiment over a longer period, or something in-between. How traders deal with scheduled data releases varies, some position themselves prior, others stand aside, others trade the data as it's released. To simply say 'stay out' is ridiculous and can mean unnecessary lost opportunities but by all means stay out if you don't know what you're doing, on the sidelines permanently is probably the best place to be if that's the case!
This was just one article… you can check out in google for market noise and understand what I mean. On the other hand, when trading news 100% of brokerage companies widen their spreads to really high levels. On the other hand, when Jean Claude Trichet was speaking the market was going up and down with 100pips because of the controversial speaking about the situation. He manipulated the market exactly for those looser who believe that this is opportunity. As a conclusion, this definitely increases unnecessary the risk!
unnecessary loss opportunities = unnecessary increase of risk and therefore loss! Please, take a look at the history of the chart in the days where important news are released and you will see that the market is not always responding to good data positively.
Quoting mr.gardner

On the other hand, when trading news 100% of brokerage companies widen their spreads to really high levels.

On the other hand, when Jean Claude Trichet was speaking

the market is not always responding to good data positively.
How many hands have you got exactly?

Anyway look, I'm not about to embark on the impossible task of trying to teach you about trading fundamentals, or why spreads widen, or the significance of Trichet's key words and phrases which traders look out for, or why the market might appear to respond negatively to positive data.....if you don't want to (or can't) trade fundamentals then don't, it's not compulsory!


Quoting mr.gardner

looser
Looser? Oh you mean 'loser', yeah you might want to remember the spelling, you might need it for future reference!
Quoting Sunjiji
I have a question. Anyone of you leads the system of notes with messages you read? Is taking that kind of notes can be useful to better understanding what is going on in the world?

Now i`m part time trader so i`d like to get some wisdom on what is going on the world, and then trade along technical (the price) and fundamental ( the direction)
//---

hey sunjiji...... good point..... zoran gayer had a neat habit of marking on the chart items of interest....

can easily be done with both metastock and metatrader.... has the potential to help when lookin back in retrorespect.........

zoran example......h
to trade and code, keep both simple... no call to impress....h
i think the main problem trading on news is that every single broker delays the execution or widen the spread. Brokerage companies can looses a lot of money if they are not careful during the release of important news....You can see what has happened with CHF a month ago....
For fundamental trading you need to know how to interpret the main macroeconomic indicators such as CPI, PPI, GDP, trade balance, retail sales, goods and services imports, etc. Then you will need to use this info for building your trading plan.
Extensive reading, follow the market trend but form your own opinion.
Quoting SPforex
For fundamental trading you need to know how to interpret the main macroeconomic indicators such as CPI, PPI, GDP, trade balance, retail sales, goods and services imports, etc. Then you will need to use this info for building your trading plan.
And most importantly, you need to know which factors among those, affect a particular currency. It does differ from one country to another and of course from time to time depending on government policy.
Quoting Expert44
If a person is new to fundamental trading, what would be advise to start with? initial directions? Thanks.
read news about the countries you are trading and check in FF for the red news a.k.a. important news...
thats what i do and that seems to function... also dont forget correlation between pairs
Perfecting your entry will increase your profits
A few of you have mentioned the COT report by the CTFC, I'm analysing the data from the compressed file found here: http://www.cftc.gov/files/dea/histor...n_xls_2015.zip (downloads zip folder with xls file).

Most of the variable (column) names are self explanatory, but a few arent (full list of variable names here: http://www.cftc.gov/MarketReports/Co...otvariablestfm)...

Does anyone here know where I can find a definitive explanation of what the variables are? most notably:

"Conc_Gross_LE_4_TDR_Long_All
Conc_Gross_LE_4_TDR_Short_All
Conc_Gross_LE_8_TDR_Long_All
Conc_Gross_LE_8_TDR_Short_All
Conc_Net_LE_4_TDR_Long_All
Conc_Net_LE_4_TDR_Short_All
Conc_Net_LE_8_TDR_Long_All
Conc_Net_LE_8_TDR_Short_All"

Cheers,
So we have technical, fundamental and moods. I recommend use all of them. Its like chair with 3 legs, delete one and you will fall. It is very difficult to distinguish between fundamental analysis and market sentiments analysis. In formation of sense of market the main role will go to fundamental analysis
People really overcomplicate trading!
Maybe people think using lots of jargon and technical terms make them seem alot more professional or appear to be successfully profitable traders.
The key is simplicity!
Look on the FF calender and single out all the releases with high volatility expected(marked red)
For instance there are normally releases regarding the GBP or USD at around 9-9:30am and again around 3pm.
High volatility releases move the relevant markets on average about 60 pips however sometimes markets can be moved up to 120 pips sometimes even in a single candlestick.
Be prepared as big market moves can be immediate and enter a trade when the market direction becomes defined.
Look for big jumps and or engulfments of previous candlestick.
ALWAYS trail your stoplosses as to guarantee profit and continue to move your take profit accordingly.
Its as simple as that trade when there are high volatility movements, these are listed on the FF calender, and enter the trade when you define which way the market is moving.
NEVER walk away from an open trade.
Dont be too hasty and enter on the basis of the information released, lay in wait until the market starts to move significantly but dont leave it too late as you will miss the opportunity.


Thanks
This type of analysis is entirely dependent on external and internal factors affecting the world economy. It may be changes in political life of the country or its general economic condition, messages about dynamics of the various indices, etc. Fundamental analysis takes into account everything, even the rumors and expectations. This analysis is carried out using the economic calendar, financial news feeds, reports of various government and non-governmental organizations, the analysis of indicators of state of the economy. So you must first find a suitable services for yourself: calendar of events, variety of indicators, schedule of news and events, interest rates ect.
  • Post #54
  • Quote
  • Last Post: Dec 4, 2015 2:56pm Dec 4, 2015 2:56pm
Today was my first day in meta trader 4 and my goal was just to look at them and see if I could identify some patterns I got on it at around 1pm and I couldn't figure out what was going on with the market.
There was a sudden spike and I couldn't put any pattern to it.
After a while I figured since I did get warned about first Fridays of each month or whatever they said I decided to check the calendar on here for news and I think I found my answer.
Now I'm not 100% sure that this is the cause since it was my first time looking at the charts so if anybody can confirm that would be nice!
Here is a screenshot: http://oi65.tinypic.com/313p006.jpg

The conclusion basically is that the calendar can be a helpful tool and it can be enough for certain traders but other traders like to delve in deeper.
It all depends on what kind of trader you are and how much time you want to spend looking for resources.
0 traders viewing now