mrscooting said:
i'm starting to think it's best to trade off fundamentals and throw techinicals out the window....technicals don't control fundamentals...
It all depends on your risk appetite and the money managment rules you are following .
ulness ur ready to see market trading against you for 500~800 pips , relying only on fundamentals is very risky and emotionaly very unpleasant .
timing is everything in this business : i simply dont know any other method to solve this timeing issue other than TA .
plus there this new story of Algorithmic trading (which nothing else than a combination of TA methods) , a growing number of traders (banks and big firms) are applying it .. so step by step TA will be the only way to profit from this ever complex markets .
a good example of divergence btween fundamentals and the market facts is indeed the yen story : the fair value of the yen is something arround 100 againt the usd but the yen is getting weaker !
also if you think about interest rates : sterling should weaken substantialy (Fed still in hiking mood whereas the MPC will likely cut at least one leg down) . but we see sterling resisting to the usd advance .. inpart because of huge M&A activities this recent months .
there are other example of conficting and realy difficult fundamentals fact to undestand and figure out .
so simply one has to LEARN TA IN PROPER WAY then :
- plan your trade and trade your plan
- drastic money managment
- no hope no fear : trade with 0 emotions
intersting subsject : and there is realy more to talk about
hope this helps
Regards
Stormy
