Technical or Fundamental Analyst?
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  1. #1
    Join Date
    Jun 2006
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    Default Technical or Fundamental Analyst?

    Just would like to start a thread to divide the house:

    What kind of trader are you, Technical or Fundamental Analyst?

    As for me, I abide by technical analysis because it does not require many hours of study and one can follow many currencies at a time. Due to the overwhelming amount of data in the market, fundamentalists tend to specialize. Since the currency market tends to develop strong trends, technical analysis works well.

  2. #2
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    Dec 2006
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    im technical because its pretty much how i was taught when i first started my trading education. anyone that is a trader or want to be a trader must start with technicals cause its easyier to work with. once you have mastered technicals then fundamentals just suppliments the knoweledge. its been 10 years since i started trading and its only now that im just begining to start to learn about fundamentals and from the lessons on baby pip and analying my personality ive just realized that i cant really stomach fundamentals cause i dont like the rush of having to work with volatility and quick movements. you need some guts to be a fundamental trader and you need to be free to sit around and wait for annoucements. most new traders probably have jobs (even if you work at home) and dont have time to sit around watching the clock. for a few dozen pips its not really worth it for me. fundamentals dont really change the moderate and long term markets too much. but if you are going to make a living out of trading then it would be worth your wild to learn and practice fundamentals.

    in any case its a good idea to learn about fundamentals even if you are a technical trader. 10 years and im still learning.
    Last edited by honeb; 12-04-2006 at 05:03 PM.

  3. #3
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    Dec 2006
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    I am Technical. Except that I may avoid major news releases. but seriously, rarely they will change the trend. sometimes they are excuses to buy or sell on a trend. and they say because of good news or bad news. But I do not believe in this typical trader note.

  4. #4
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    Dec 2006
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    Norristown, PA
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    I have been reading many books on technicals and that is my preference. However, I have been following all of the major news announcements concerning the US Dollar just to have an idea how the currency reacts to it and I really like jumping on the bandwagon and riding the trend whenever possible. I also love those opportunities that present themselves when the dust settles after a news announement.

  5. #5
    Join Date
    Dec 2006
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    Technical here as well.

    I totally agree with Churchille. no matter how you look at it - technical is way easier to learn and start with. I guess that Fundamental education is the difference between an experienced trader and an expert.

    Honeb, if I may ask, you've been trading using ONLY technical for ten years? how have you been doing? if you tell me you've been successful (details would be appreciated ), I'll seriously consider learning only the basics of Fundamental and focusing almost entirely on my technical.

  6. #6
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    Dec 2006
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    I use primarily technicals as well. But you don't have to choose one or the other. There could be some reasonable combination. For instance, you could first start by looking for the best technical set-ups and then look at the fundamental factors surrounding that pair. If the overwhelming fundamental consensus is for shorting the dollar, then it may be a lower probability trade if your technical set-up suggests going long the dollar.

    Bottom line: Look for your technical set-ups to be harmonious with the fundamental views and you give yourself a better scenario, i think.

  7. #7
    Join Date
    Dec 2006
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    99
    Quote Originally Posted by parsush View Post
    Honeb, if I may ask, you've been trading using ONLY technical for ten years? how have you been doing? if you tell me you've been successful (details would be appreciated ), I'll seriously consider learning only the basics of Fundamental and focusing almost entirely on my technical.
    i have been successful with only technical stuff but im not a successful trader at all. and knowing how to trade with both wouldnt have changed that kind of trader i was for the last 10 years. it wasnt my system that has failed me it was my lack of knowledge of the basics of trading in general. good traders have both technical and fundamentals under their belts. but you can easily get away with following one or the other and still be successful. i found that both technical and fundamental indicators have their moments. most people tend to prefer technical because the data is right there infront of you. there is little to interprete and everything is organized right there for you. its easy to learn how to read a graph then to understand economics. the whole purpose of graphing info is to make it easier to interprete which is why its usually the clear favorite tool .

    with fundamentals you got to read and wait and read and wait... you need to wait for enough data to come in to decide whats happening for the long term and you have to move quick to capture movement in recent annoucements that affect the short term. it takes more effort to undertand, interprete and organize fundamental data.

    im just learning the basics right now when it comes to fundamentals. i do this not because i have to but because it cant hurt me to know about the fundamentals. like i said before. knowing both doesnt automatically make you a better and more successful trader but it does give you an edge.

    i am with you when it comes to knowing the basics of fundamentals but being a bit more exclusive with technicals. thats not a bad way to trade at all. there is no way you can equally incorperate both in your trading decisions anyways. personally i suppliment my lack of basic fundamental knowledge with reading reports from analysts. they do a good job of taking the data and summing everything up short and sweat. but nothing beats being able to do this for yourself.
    Last edited by honeb; 12-19-2006 at 05:45 PM.

  8. #8
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    Dec 2006
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    It makes no sense to me to not follow fundamentals in the long term. I would think trade on technicals and invest on fundamentals would be a good axiom.

  9. #9
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    Dec 2006
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    I am still learning the ropes! For me is all still new, but Id say so far my experience is with technicals. It is so much that one have to learn! I think mybe I dont have the stomach to go for it! But I am reading everything that comes into my hands. My goal is to feel more secure of all this within 6 months!

  10. #10
    I am both a technical and fundamental trader, and I think as difficult as it may be to understand fundamental analysis, it may be worth it to improve your trading. I know there are a lot of traders who make a really good living by using strictly technical analysis, but the world's best traders made their fortunes using fundamental analysis mostly.

    If you read books about the world's best traders who were interviewed, like "The New Market Wizards" and "Inside the House of Money," you'll see these guys studied fundamental situations and exploited them. A wealth of knowledge can be gained by reading these books just to study their thought processes.

    I'm not saying everyone should switch to fundamental analysis only, but to avoid it because it's difficult to learn and understand could mean missed out profits.

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