Technical Analysis v Fundamentals, OR ratio

This is a discussion on Technical Analysis v Fundamentals, OR ratio within the General Trading Chat forums, part of the Reception category; Hey folks, I'm just wondering whether you prefer TA or Fundamental analysis when it comes to your trades? Or perhaps ...

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Old Nov 14, 2017, 3:02pm   #1
Joined Sep 2017
Technical Analysis v Fundamentals, OR ratio

Hey folks,

I'm just wondering whether you prefer TA or Fundamental analysis when it comes to your trades? Or perhaps you use a particular ratio of both?

Please also state your typically traded markets and why you prefer your chosen style of TA v Fundamentals.

Thanks
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Old Nov 14, 2017, 4:40pm   #2
FXX
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just my observation of everyone on here. Only a handful seem to use fundamentals with the rest using pure technical strategies. You know where i am with this
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Old Nov 14, 2017, 4:59pm   #3
 
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because with fundies you have to actually know smthg

i stay away from fundies
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Old Nov 14, 2017, 5:58pm   #4
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just my observation of everyone on here. Only a handful seem to use fundamentals with the rest using pure technical strategies. You know where i am with this
Yep, I know where you stand.
I am not sure i'd go as far as saying that 1 is outright better than the other but there are definitely instances where one largely negates the other.

I use both, but to varying degrees.
I started out with TA and have found it very useful (I often scalp) but I have a friend who started trading about 6 years ago and uses the same platform/broker as me and it was news to him when I told him about spreads widened during releases and potentially dragging you in/out of trades even though price is nowhere near that level. I often remember saying something to him about an upcoming release and he's outright tell me he doesn't care about news releases... how can someone not care about upcoming releases? To me that is nuts! Even if you are a 99% TA trader, the releases will steamroll your trades frequently.

Granted the guy I speak of mainly swing trades FX. But swing trading and refusing to acknowledge these releases??. He's got to be leaving a lot of pips on the table!

NOTE: Though apart from his bravado of trying to beat me in a competition 2 months ago (and losing ) his trading is going well.
He makes it far more difficult that it needs to be imo, but it seems to be working for him.
Though his comments about margin being a good stop loss was quite concerning.

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because with fundies you have to actually know smthg

i stay away from fundies
You still need to know something with TA too mate
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Old Nov 14, 2017, 6:09pm   #5
FXX
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I can't comment on markets other than fx. What I can say is in fx everything is driven by sentiment which is influenced by central banks, economic data, political and geopolitical events. Anyone who doesn't understand what's driving price is disadvantaged and this is the most likely cause of high failure rates. The ones that manage to carve out an edge using pure technical analysis are prone to system failure. The other issue they have is not knowing when a market is likely to range and for how long and the same applies to trends in their various forms. I don't know why people are so afraid of fundamentals. Perhaps they don't know how to put things together or perhaps they prefer to keep things easy. Whatever it is there surely is a correlation with this and the failure rate.
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Old Nov 14, 2017, 6:14pm   #6
 
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how as a retailer can i know how the banks will react with all their ivy leauge traders & economists and their resources?

i can't, so i don't try. i do best i can with the chart

balls out on the chart
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Old Nov 14, 2017, 6:35pm   #7
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Originally Posted by FXX View Post
I can't comment on markets other than fx. What I can say is in fx everything is driven by sentiment which is influenced by central banks, economic data, political and geopolitical events. Anyone who doesn't understand what's driving price is disadvantaged and this is the most likely cause of high failure rates. The ones that manage to carve out an edge using pure technical analysis are prone to system failure. The other issue they have is not knowing when a market is likely to range and for how long and the same applies to trends in their various forms. I don't know why people are so afraid of fundamentals. Perhaps they don't know how to put things together or perhaps they prefer to keep things easy. Whatever it is there surely is a correlation with this and the failure rate.
I have noticed an active push (more like run) away from fundamentals also (mainly retail traders?). I don't know why. Effort could be a significant reason, and the fluidity of fundamentals. Another thing to highlight is the overwhelmingly TA nature of the "educational resources" that new traders come into contact with as soon as they step foot in the world of trading. At least from the retail side of things anyway. Put the algo scammers aside for minute. In my experience, I had to explicitly go looking for information on fundamentals, whereas when just learning the general jist of trading, it was 98+% TA based.

I think if you are going to disregard something, at least know it well enough to disregard it.
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Old Nov 14, 2017, 6:35pm   #8
FXX
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Quote:
Originally Posted by piphoe View Post
how as a retailer can i know how the banks will react with all their ivy leauge traders & economists and their resources?

i can't, so i don't try. i do best i can with the chart

balls out on the chart
By looking at the same things they are looking at using various tools. Charts won't give you this information.
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