Hello people,can anybody offer any opinions on the rato of importance of the above with regards to swing trading forex?
With the fundamentals with swing trading is it just a case of going by the most important data released (red flag),or would they all have some effect,or is it more random on any given day?
Also if you traded in the direction of the fundamentals & tech analysis with swing trading,what % of winners vs loosers would you say you would come out with on a trade by trade basis,assuming you didnt get too greedy,but still took a small profit?
I know a great swing trader who uses nothing but support and resistance, with large positions over many weeks/months he cares little for fundamentals.
I guess it depends on your definition of swing trading, but longer term the fundamentals make less difference i.e. there are less ‘knee jerk’ reactions to news and events.
Your questions would be best answered by your own research… it would not be prudent of you to accept the advice of others regarding your trading account unless you have spent the requisite time researching your method
I use a technical approach with an ear open for fundamentals news…
To attempt an answer to your first question, I would say that:
— for very short-term traders, fundamentals have negligible importance
— for swing traders, it might be 80% technicals / 20% fundamentals, and
— for very long-term traders, it might be 80% fundamentals / 20% technicals.
In answer to your second question, “trading in the direction of the fundamentals and technicals”, as you put it, sounds like an elaborate way of saying “trading with the trend”.
Trading with the trend is important; but, by itself, it can’t determine a win-ratio (ratio of winners to losers). That depends on
(1) your strategy, (2) your timing, (3) your money management, and (4) your emotional control.
With those four elements in your favor, you could trade [B]counter-trend[/B] exclusively, and have a fabulous win-ratio.
Without those four elements in your favor, you could trade [B]with the strongest trend available[/B], and lose every time.
I agree that “swing trading” has to be defined, in order to answer the question.
But, I disagree with the rest of your statement. “Fundamentals” involve much more than just “news” (economic data releases).
And fundamentals are [B]more important[/B] to long-term traders, not less important.
As for defining various trading styles, I think of them this way:
Scalping trades last from seconds to minutes
Active trades last from a few minutes to an hour
Day trades last from an hour to a day
Swing trades last from a day to a week
Position trades last from a week to months (or even longer)
You might define these trading styles differently. And you might be right.