Forex Fundamentals (< Alliteration!)

[GladiatorX]

Hello, i'm looking to incorporate fundamentals into my hourly and daily trades of the Forex market to expand my knowledge and increase my results i would hope... I read on these forums the importance of including fundamentals in your trading decisions and this is very much something i'd like to learn more about! What do you guys use to get your Forex news... Where can you learn how to interpret news readings and the revelance they have on the prices of forex...

Is it the case of waiting for economic announcements on ForexFactory.com and looking at expectation Vs reality, or watching Bloomsberg or having a live data feed from someone that gives news fast for a cost ? Or something else ?

Thanks i'd really appreciate some feedback, especially from traders such as Arabiannights who says he more and more bases trades on fundamentals (I understand he trades STIR) but where do you get your information on fundementals from and what exactly do you mean? News that comes out 'economic figures' or ?

 

[GladiatorX]

Super.

 

[Neoripley]

EDIT: Actually it sounded like I was trying to give you advice in my previous post and I don't think I should be doing that. Just ignore what I said, cheers

 

[BSD]

Neo, I actually caught your answer before you deleted it and thought it hit the nail right on the head.

Too bad you pulled it.

But Gladiator, here is a good read on the subject:

Brett Steenbarger: matching-time-frames-of-your-analyses

Also:

"High Frequency Trading

The drastically reduced cost of electronic trading has made a huge variety of new and different trading strategies feasible. Led by Jim Simons' Medallion Fund, the high frequency hedge fund category is now the most profitable on Wall Street.

"In fact, high frequency trading has boomed in recent years, to reportedly account for an estimated 70 per cent of average daily trading volume. The technology essentially involves automated tick-by-tick, high turnover buying and selling, which relies heavily on the speed and sophistication of the network and computer systems involved. These are lightning fast and voluminous trades to take advantage of minute and fleeting changes in prices. Speed is obviously essential — as is beating the competition to an arbitrage opportunity."
FT Alphaville » Blog Archive » The Cold War in high frequency trading

Trading on those time frames its kinda self explanatory that the state of the economy doesn't factor much into the trading.

Longer term stuff is a different question, but intraday trades should focus on what the market IS doing, not what it SHOULD be doing because of fundamental reasons.

 

[BSD]

Another goodie:

Market Folly: Hedge Fund Manager Interviews

Excerpt from Paul Tudor Jones:

“It’s a hell of a lot easier to get an information edge on one stock than it is on the S&P 500. When it comes to trading macro, you cannot rely solely on fundamentals; you have to be a tape reader, which is something of a lost art form. The inability to read a tape and spot trends is also why so many in the relative-value space who rely solely on fundamentals have been annihilated in the past decade. Markets have consistently experienced ‘100-year events’ every five years. While I spend a significant amount of my time on analytics and collecting fundamental information, at the end of the day, I am a slave to the tape and proud of it.

[I come] from that period of crazy volatility [in] the late ’70s and early ’80s, when the amount of fundamental information available on assets was so limited and the volatility so extreme that one had to be a technician … When I got into the business, there was so little information on fundamentals, and what little information one could get was largely imperfect. We learned just to go with the chart."


Hedge Fund Manager Interviews ~ market folly

Makes sense as markets can remain irrational far longer than your account can survive as the saying goes.