Greeting Pipmasters, I am new in this forum, and I want to thank for this website for providing much forex explanation, especially for newbie like me, although I am not English native, the content still enlighting.
Nevertheless, several things or point still confusing, thus, I post new thread hoping some advise from other member.
here are the question
Babypips said that fundamental, technical, and sentiment information plays important role for our trading, ignoring one of them will lead us to disaster. Well, as I have seen so far, fundamental issues changes the market gradually, so, it would be more important for medium or long term trader, my question, is it possible for short term trader to get good profit by placing his position far away from volatile market (due to fundamental issue) while ignoring fundamental news.
Key point is: get away from volatile period, take the short trade, with technical analysis as our only weapon.
Thank you,
(To be honest, I don’t really know where exactly I have to post my thread)
Hmm, I think I got your point (i had revisited babypips school and tried to understand the content), although I am a short term trader, using fundamental analysis to cover technical blindspot is mandatory, though our technical indicators quite often give correct prediction, but this doesn’t always happen, and fundamental analysis, for short term trader, provide us informaton about one bad day in a year good day.
But you still need to know when to avoid news, so that is basic fundamental analysis.
Once you have been trading for a length of time you will realise the need for fundamental
analysis. I came into trading with a total hatred of fundamentals but have realised the
error of my ways.
Now before I even look at a chart I look at the fundamental calender.
Hello daydreamer65 nice to meet you. Do you really place that much importance on fundamentals? I have not traded Forex so I cannot say how much I would value/not value it.
But when I traded equities, especially in this past year and crazy debt crisis and Bernanke driven market, it seems that news has more impact than say the cash flow ability or profitability of a business. People seem to be ignoring that.
I do not know a great deal about equities etc. (next on my list.)
But Forex is very susceptible to the vagueries of fundamentals, take
the movement in the Euro two weeks ago when Draghi spoke, when
their are significant interest announcements, Non-farm payroll to name
just a few.
This was the point I was trying to make to the O/P, even trading the
lower timeframes you will be caught out by a news release unless you
keep your ear to the ground.
