I’m just starting to look into Forex trading so this is just a very general question…and maybe not worded 100% correct, but I was wondering if it’s possible to successfully trade on ONLY technical analysis.
In other words, with my full time job and other things I don’t have a lot of time or attention to watch News, financial data reports, etc. etc.
I’m thinking for me, I might enjoy very short-term trades, so far I’ve read a tiny bit about scalping/jobbing and that sounds interesting.
Can someone be successful with just technical analysis?
The market is in a period of ignoring fundamentals, and technical analysis seems to rule. Its always good to know what is happening fundamentally though, check forexfactory.com daily for any upcoming major news, price can go crazy around these news realeses. As far as scalping, leave it to the pros. No noobie is going to come into the forex market, and start scalping and make money. I would suggest the 1 hour at a minumum for analysis, preferebly the 4hr and daily charts. Just my opinion, goodluck.
You can trade just fine using only technical analysis… I’ve been doing it for quite a while.
All the big news events are scheduled in advance, all you have to do is stop trading around the time they come out. There is no need to follow what the news says or to try to predict it.
And please don’t try scalping yet, you need to learn on higher timeframes. If you have a full-time job trade 4 hour or daily charts. It only takes a few minutes per day.
As much as I am mainly a technical trader/analyst I am going to wholeheartedly disagree with this statement. All you have to do is look at how GBP has traded the last few weeks since the BoE announced the expanded quantitative easing program (meaning increased money supply) as just one example to see that fundamentals are heavily influential right now - not all the time every day, but definitely in the big scheme.
That seems to be the majority of opinion. But as rhodytrader pointed out the fundamentals are gaining in influence.
I am not a technical trader/analyst. I use TA especially for my entries and my umbrella trades but I don’t rely on it. I use fundamentals and intermarket correlation for my decision process and methology in order to find trading opportunities.
When I spot them I do use technical analysis and one of my trading system in order to confirm what fundamentals and intermarket correlation tells me.
If it is confirmed I use TA for entries in accordance with my trading system.
Sometimes I wait weeks before I spot trading opportunities but when I see them and confirm them like last Tuesday I take 9 positions in 9 different instruments at once.
The gains are substantial because of the correlation and amount of taken positions but as I mentioned above you have to be very patient and very disciplined.
Without emphasis on fundamentals I couldn’t trade like I do.
It is possible to trade mostly with Technical Analysis but you need to be aware of the big news announcements to avoid swings that will cause some big, unexpected losses. I check Forexfactory every day and also set up Tweets that remind myself and my followers when an important news announcement is coming out. You may want to set an alarm or similar for the big announcements.