How do you use news to trade? I have a method that I’ve learned from Navin Prithyani which is to only look at the Red (High impact) news and put it in a table but I’d like to see different methods with explanations to see what makes the most sense.
FA is a mindset.
Right now think about risk - look at say USD2000 (dy1) - small caps - you buy those if you feel risk is on your side - then again would you buy JPY (Usd/Jpy dy1) if you likewise feel for risk on?
Then again think about buying US Bonds - would an investor buy or sell US10yr if he/she felt for some risk.
You cannot put a mindset into a table because that set’s focus is the future.
Btw - see how Jpy took a little while to catch up.
US10yr -price:
Russell 2000
Yen:
Look up jarrat davis and anton kreil. They both use fundamentals. You may learn something from them.
Thanks, So just to clarify you’re saying that fundamental analysis is about understanding what or how people are feeling about current market conditions and how that affects the market? And that would include looking at safe haven currencies and things that people buy for safety like government bonds?
Thanks, I’ll have a look at their content.
Risk sentiment or market sentiment is known as - basically thinking as an investor = by definition he/she already has the money, they either are seeking more or else protecting what they have.
Some of the news in Red have similar reactions from the economy over and over again. So check history to see the circumstances, what triggered to those reactions and compare with current trend to know how it may turn out this time.
Ohh ok understood, Thank you very much
Wow, so essentially backtesting fundamental analysis? didn’t think of that. Thanks