Balance Between Fundamentals and TA

[tommog]

Hi,

The majority of people's trading system appear to be based on technical analysis and i personally find this style most suited to the way i like to trade also. But i am still fairly new to the trading game and would like some advice from some of the experts on these boards as to how much their trading systems take into account macro economic factors, daily news etc? Or can all of this be read in charts?

Is it possible to trade purely from watching price action and charts even if you didn't know what market you were trading. So in effect, turn your hand to anymarket

I'd be interested to hear your views,

thanks for your time

 

[Glenn]

Ask yourself why an unaltered house has gone up so much in value over recent years.
The 'fundamentals' of the house haven't changed.
The price changes as a result of supply and demand. Things like the rate of house building and the interest rate will affect these.
Likewise with the stock market, but with more variables.
Glenn

 

[TheBramble]

how much their trading systems take into account macro economic factors, daily news etc? Or can all of this be read in charts?

Is it possible to trade purely from watching price action and charts even if you didn't know what market you were trading. So in effect, turn your hand to anymarket

I avoid 'news' like the plague when I'm trading.

Watching price action is where it's really at.

Either the news is factored into the price - or it's not.

Either way - you want to be trading the price - not the news.

 

[sharriss]

I use fundamental data to automatically filter out stocks, leaving me with a managable selection of undervalued (hopefully!!!) stocks to trade with TA.

I filter on PEG, but also factor in EPS Growth and yield, it's a work in progress but I think it's good for my style.