Trading Fundamentals

This is a discussion on Trading Fundamentals within the Trading Systems forums, part of the Methods category; These are the events that move the markets and therefore imho be of the utmost importance. They may come in ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Jun 14, 2017, 8:52am   #1
 
Pat494's Avatar
Joined Mar 2004
Trading Fundamentals

These are the events that move the markets and therefore imho be of the utmost importance.
They may come in the form of official announcements or current events. Particularly the big players such as the US, EU and China are of special interest.

So let's have a look at today's calendar and what do we see ?

The US is going to make a Rates announcement.
Have a look at what the pundits say. These boys are pretty good. https://www.investing.com/news/forex...y-clues-495116
__________________
Love your own area.
Long live NIMBYISM

for quality of life.

The Westcountry is being overrun with
grotty new estates

Last edited by Pat494; Jun 14, 2017 at 8:53am. Reason: spelling
Pat494 is offline   Reply With Quote
Old Jun 14, 2017, 8:58am   #2
 
Pat494's Avatar
Joined Mar 2004
Pat494 started this thread An excellent calendar is https://www.forexfactory.com/calendar.php

Today is a BIG day with lots of US action. Will the Fed move rates etc. ? That is THE question. All the USD pairs are likely to move substantially but be careful of the move being priced in already and the big boys taking profits !
__________________
Love your own area.
Long live NIMBYISM

for quality of life.

The Westcountry is being overrun with
grotty new estates
Pat494 is offline   Reply With Quote
Old Jun 14, 2017, 9:01am   #3
Joined Apr 2017
Thank you for enlightening us and leading us to the Holy Grail.
Attached Thumbnails
dumb.jpg  
foroom lluzers is offline   Reply With Quote
Old Jun 14, 2017, 9:23am   #4
Joined Feb 2002
I have to be a little apprehensive re my long-term EUR/USD long. That said, on daily forex charts, I've tried to back-track and pick out "blind" the dates when various economic event interrupted or reversed a trend. Its honestly really hard to do. It just seems that the market is usually effective at anticipating events and "pricing in" the impact.

I'm reading that a fed rate hike tonight will lift the $ (because that's what classically happens) and that it won't (because it didn't last time).

I'm sitting tight at the moment.
tomorton is offline   Reply With Quote
Old Jun 14, 2017, 9:26am   #5
 
Pat494's Avatar
Joined Mar 2004
Pat494 started this thread Yes it is not easy.
Other effects probably should have been factored in too ?
I have got software that analyses the situation automatically. It usually gets it right but not always.
For instance it is already up 1% today ( on my demo ) account.
__________________
Love your own area.
Long live NIMBYISM

for quality of life.

The Westcountry is being overrun with
grotty new estates
Pat494 is offline   Reply With Quote
Old Jun 14, 2017, 10:42am   #6
Joined Apr 2017
THE DISADVANTAGES OF TRADING FUNDAMENTAL ANALYSIS

trying to trade the news is trying to time the markets , it does not work.It has been proven that it is not a good way to trade , by timing to perfection.Fundamental analysis may show a trade , but prices may lag for months , resulting in losses for the unwary traders.

“Fundamental analysis creates what I call a “reality gap” between “what should be” and “what is.” The reality gap makes it extremely difficult to make anything but very long-term predictions that can be difficult to exploit, even if they are correct.” – Mark Douglas
foroom lluzers is offline   Reply With Quote
Old Jun 14, 2017, 10:52am   #7
 
Pat494's Avatar
Joined Mar 2004
Pat494 started this thread
Quote:
Originally Posted by foroom lluzers View Post
THE DISADVANTAGES OF TRADING FUNDAMENTAL ANALYSIS

trying to trade the news is trying to time the markets , it does not work.It has been proven that it is not a good way to trade , by timing to perfection.Fundamental analysis may show a trade , but prices may lag for months , resulting in losses for the unwary traders.

“Fundamental analysis creates what I call a “reality gap” between “what should be” and “what is.” The reality gap makes it extremely difficult to make anything but very long-term predictions that can be difficult to exploit, even if they are correct.” – Mark Douglas
I think you are being a bit pessimistic. Practice should improve results.
I have to admit I am a noobie at Fundamentals but hope to improve.
__________________
Love your own area.
Long live NIMBYISM

for quality of life.

The Westcountry is being overrun with
grotty new estates
Pat494 is offline   Reply With Quote
Old Jun 14, 2017, 10:56am   #8
Joined Apr 2017
Quote:
Originally Posted by Pat494 View Post
I think you are being a bit pessimistic. Practice should improve results.
I have to admit I am a noobie at Fundamentals but hope to improve.
PATIENCE should improve results.
foroom lluzers is offline   Reply With Quote
Old Jun 14, 2017, 11:11am   #9
 
Atilla's Avatar
Joined Nov 2006
Quote:
Originally Posted by Pat494 View Post
I think you are being a bit pessimistic. Practice should improve results.
I have to admit I am a noobie at Fundamentals but hope to improve.

Yesterday was a good great day to exercise news and fundamental analysis application.

After the inflation figures cable just simply trended upward for the whole day. Simple.

If inflation rises then BoE comes under pressure to do something about interest rates to stave off economy over heating.

As we all know inflation -> rate increase -> hot currency flows strengthen pound.

Pretty straight forward really.


No point arguing / debating which is best; TA, FA or News. Use all three.
__________________
Know your L I M I T A T I O N S
Atilla is offline   Reply With Quote
Thanks! The following members like this post: Pat494 , tomorton
Old Jun 14, 2017, 3:16pm   #10
 
Pat494's Avatar
Joined Mar 2004
Pat494 started this thread Well 1.30pm UK time was the crunch time and sure enough there was plenty of movement in many pairs.
I enclose a snip of Usd-Jpy. The red vertical line is 1.30pm.
Attached Thumbnails
usd-jpy.png  
__________________
Love your own area.
Long live NIMBYISM

for quality of life.

The Westcountry is being overrun with
grotty new estates
Pat494 is offline   Reply With Quote
Old Jun 14, 2017, 3:33pm   #11
Joined Apr 2017
Quote:
Originally Posted by Pat494 View Post
Well 1.30pm UK time was the crunch time and sure enough there was plenty of movement in many pairs.
I enclose a snip of Usd-Jpy. The red vertical line is 1.30pm.
Did you buy or sell ?
foroom lluzers is offline   Reply With Quote
Old Jun 14, 2017, 4:10pm   #12
 
Pat494's Avatar
Joined Mar 2004
Pat494 started this thread
Quote:
Originally Posted by foroom lluzers View Post
Did you buy or sell ?
It is a pity I just sat and watched as I would have got it right !
__________________
Love your own area.
Long live NIMBYISM

for quality of life.

The Westcountry is being overrun with
grotty new estates
Pat494 is offline   Reply With Quote
Old Jun 14, 2017, 6:34pm   #13
Joined Apr 2017
Quote:
Originally Posted by Pat494 View Post
It is a pity I just sat and watched as I would have got it right !
Hindsight is everything!
foroom lluzers is offline   Reply With Quote
Old Jun 14, 2017, 8:47pm   #14
Joined Feb 2002
Quote:
Originally Posted by foroom lluzers View Post
Hindsight is everything!

Looking back, I just knew you were going to say that.
tomorton is offline   Reply With Quote
Thanks! The following members like this post: Atilla
Old Jun 14, 2017, 9:18pm   #15
Joined Feb 2002
Well there we go. A bit of volatility but the EUR/USD is pretty much back where we started. Admittedly the daily now looks like an inverted hammer but on its own its not something I'd open or close a trade on.
tomorton is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Fundamentals: what do they mean to you? Chartsy General Trading Chat 49 Sep 3, 2010 11:35pm
Do you use Fundamentals Rhody Trader Economic & Fundamental Analysis 115 Jun 28, 2005 11:53pm
Using Fundamentals TA03 Economic & Fundamental Analysis 4 Jun 11, 2004 4:24pm
some help?? (fundamentals) bigtrade First Steps 2 Jan 23, 2004 12:03pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)