Forex Strategies

Beginner Questions
1

Do you primarily focus on technical analysis or fundamental analysis for your strategies?

2

Technical. Only.

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3

I mostly rely on technical analysis for my strategies since it gives me clear entry and exit points. But I don’t ignore the fundamentals. They help me get the bigger picture and manage risk better. For me, it’s all about balancing both, while always keeping risk management at the forefront.

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4

Technical only.

Fundamentals are already reflected in TA before prices reach us independent traders.

Fundamentals are also an area in which I could never possibly compete with the institutionals whose trading drives the markets, but I’m happy to try to let them do it for me, and sometimes to try to follow them.

I just make sure I avoid “red news”, because I can’t afford to trade without a stop loss, and if you trade “red news” that’s effectively the risk you take: it’s the one time a broker might not be able to honour your stop loss, and I spend too much money on hats to be willing to pay extra to use a guaranteed-stop-loss broker.

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5

Technical analysis only (for exactly the reasons given in the post just above).

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7

I focus purely on technicals because I can’t backtest fundamentals. Since I rely on data and historical patterns, fundamentals don’t fit my approach.

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8

Same.

I can’t really believe that spending time on fundamental analysis is a good, valuable or helpful use of a retail trader’s time. I suspect that many who post about it in forums are actually subtly promoting some service, which is their real income, as trading isn’t.

How can I ever know as much as a DeutscheBank pro-analyst with a PhD in economics who’s holding down a $200,000-salary job by mostly being right?

It’s both completely unrealistic and (fortunately) completely unnecessary.

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9

Here you make a very good point. The people here (and in other forums) compiling threads about fundamentals almost always have a pretty clear promotional agenda which is apparent from their usernames, logos/avatars or links in their profiles.

There may be another I‘ve missed, but I can actually think of only one obvious exception to this principle. And it does show something, exactly as you suggest.

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10

I use technical analysis, focusing on key support/resistance levels to identify entry and exit opportunities.

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11

I look at it the other way round.

The big players have algorithms which can obviously pick out price-action patterns far better than I ever can, but I think I can probably get a holistic view of the fundamentals as well as their alleged experts can.

That’s mostly because the current politico-economic circumstances have never arisen before, which I think probably removes almost all the advantage they might otherwise have had.

12

This “stop-loss” order for negative return? You enter these orders on every trade?

13

For me, technical analysis is way easier. You just need to read the charts, that’s it.

14

I do fundamnetal first to get a idea about the direction of the market!

15

Are you suggesting that’s a reason to depend on it, or a reason to look for something else as well?

16

Yeah, exactly. Fundamental analysis means keeping up with news, reports, and a ton of factors, which is a lot. I just prefer price action—clean and simple. Do you mix both, or stick to one?