Marrying fundamentals to quant analysis, the hedge fund way:
Once you have done your homework and analysis, believe in yourself and let your trade run. Good point.
Exactly! Do not micromanage.
Also, getting in early and letting a trade run.
Do not overtrade.
Etc.
We canāt avoid fundamental analysis here! Even, if a trader uses technical analysis or naked trading strategy but he has to know when the big events are! Because, one fundamental data can changes the trend of current market! Basically, I trade based on Price Acton strategy but fundamental data inspires me to use higher trading lot size! By using my fundamental knowledge I can trade here confidently!
Very good if we can combine fundamental analysis with technical anlaysis, because often news fundamental also giving high impact and instant impact to currency, usually I am reading news on calendar economy on forexfactory, which also update data news on realtime
Fundamental an technical analysis are important at their place . I do trading mostly on technical. Some times I try fundamental analysis . I do not think fundamentals are bad. Trader should have skill to trade on news specially high impact news time is very sensitive so h e has to plan before trading .
Donāt forget sentimental analysis.
We should consider all 3 aspects when we trade, even though we may focus on just 1.
Technical analysis can show us what happened in the past, where s and r levels are, trends, etc, which can help suggest possible future movement, but you canāt simply ignore economic and political events, nor market sentiment
I dont think so, there are several traders that make use of fundamental analysis and trade very well. If you understand news properly then you can do a lot of good trades in the market.
Most fundamental analysis goes over my head, to be honest. And even when I do understand it I am too anxious to trade during big news events.
Yes indeed, we can learn fundamental also as trading purposes, because in fact often news especially high impact making the market moves very volatile and often on large movement, but some technical trader they donāt like trade on news time because often fail
Fundamentals that you read about are typically useless as the market has already discounted the price. - Ed Seykota
I think following update news also useful might we still remember about brexit time, before brexit vote many broker already making adjustment with change margin requirement during brexit and in fact after vote finished then making the market very high volatile and migt some trader get huge profit
Those who knew about how to use fundamental analysis, will get how to trade using it. Not every one can do it in Forex. Experience teach us how to use different analysis at trading.
I met an investment banker a couple of years back whilst he was trying to buy a company I was working for. He toured the premises and even sat down and had lunch with us. He asked us about the business etc but later I got talking to him about stock market and that I had a look at forex trading and mentioned some charting book I was interested in. I remember him telling me that a firm he worked for had a trading floor and their analysts never used charting books, only reserve bank statements to set up trades. Since this thread started and what I have researched on fundamental analysis (including what the investment banker said to me), Iām beginning to wonder if pure technical analysis is really for me.
So many beginner included me choose technical analysis because simple than use fundamental analysis, because need many data and also how to making decision in trading, and technical analysis will simple than fundamental because also only use indicator as help tool and directly implemented in the market
Of course, everybody has to understand the fundamentals of economics. Technical analysis is good and it really works but itās always better to know what happens on the market and why. Though I havenāt huge experience in trading yet, I try to pay attention to both technical and fundsmental analysis.
Everyone has different prospect to make money. Some make it on the basis of long term, some on news trading/intraday . But fundamentals give better output in long term trading. Fundamentals are the base of studying the stocks, being a long term trader I would give more importance to fundamentals rather than technicals. During day trading fundamentals might not give you that results. But when fundamentals prove themselves on charts, they can create wonders termed as breakouts. So on my personal experience, I will ratio fundamentals to technicals as 1:0.6. So Fundamental analysis isnāt at all waste of time atleast for long term traders.
I donāt think so because there are many traders that trade using fundamental analysis as their main analysis and they are doing very good. Though many technical traders will say that its useless but its not.
I do not think fundamental analysis is bad . many f traders are doing best trading on news. Main thing is how you analyze market during and after news. How you plan to manage accounts before trading . If you had practice on fundamentals then it is true it can bring profit.
Analysis is a very important factor in the trade. And accuracy of the assay will depend on your success in the trade.