what is your story about losing money using fundamental?

[ready]

i was just wondering if anyone has a story where they lost money and if they could share it with us. we might be able to learn something from our and each other's mistakes.

[topchess]

I have lost money before using fundamentals only, It really hurts, here is how.

A few months back, all fundamentals pointed to a stronger euro, fed to cut rates soon, and I read articles every where about near term dollar decline.

I thought I will be the smart man, and entered a long with 2 lots on EURUSD from 1.2800. That day, Euro spiked to as high as 1.2832, and came down 1.27.

And in no time, EURUSD was trading 1.25 *without any significant reason or significant change in fed or euro outlook*.. and I lost money on that just to see the EURUSD fundamentals playing very hard the pair up to 1.30 break thru and 1.33 later in the week.


The story hurts me, because I was going on the right track with fundamentals, but my unability to agree that technicals should be followed too, and that long term swings need a big capital made me lose so much on this trade.

At end, I lost half of my capital on that swing, cause I couldn't afford euro to drop to 1.25 before it goes to 1.28, thereafter 1.30/33.

Traders. Please, do not trade based on long term unless you have the big money to cover losses first. You never know what will change in the near term. Do not think that you will be riding an early rally, no...get in late and safe better than sorry!

[honeb]

Originally Posted by topchess

I have lost money before using fundamentals only, It really hurts, here is how.

A few months back, all fundamentals pointed to a stronger euro, fed to cut rates soon, and I read articles every where about near term dollar decline.

I thought I will be the smart man, and entered a long with 2 lots on EURUSD from 1.2800. That day, Euro spiked to as high as 1.2832, and came down 1.27.

And in no time, EURUSD was trading 1.25 *without any significant reason or significant change in fed or euro outlook*.. and I lost money on that just to see the EURUSD fundamentals playing very hard the pair up to 1.30 break thru and 1.33 later in the week.


The story hurts me, because I was going on the right track with fundamentals, but my unability to agree that technicals should be followed too, and that long term swings need a big capital made me lose so much on this trade.

At end, I lost half of my capital on that swing, cause I couldn't afford euro to drop to 1.25 before it goes to 1.28, thereafter 1.30/33.

Traders. Please, do not trade based on long term unless you have the big money to cover losses first. You never know what will change in the near term. Do not think that you will be riding an early rally, no...get in late and safe better than sorry!

this is a perfect example as to why fundamentals should be used with causion for short term trades. its seems to be a good idea to use fundamentals a an early signal of reversals so that you are prepared but i personally dont like make trades on them. i still realy on technicals to get me in at the right time. if you are a long term trader then its in your best interest to follow fundamentals and if you are a day trader its a good idea to watch out for annoucement (either avoid them or work with them).