could be use of any economic data, such as interest rates, to make long-term trading decisions.... or a combination of several.Fascinated why there's a thread on FA in a trading forum.
Curious, what approaches do you use (if any) doing FA?
Personally, I think that we're living in a much more fundamental world than technical at present. As Mr o'Clubs said above, using technicals to enter exit trades is great but fundamentals drive direction as well as give indications of future stress.
IMHO markets are and have been for the last +4yrs drive by fear and over-excitement. In such an environment, having a good grasp of the fundamentals means you can anticipate likely outcomes and position according for the somewhat crazy moves that happen as a result. e.g. today was the ESM ruling, was almost a given that it would be ratified by the German supreme court. An upcoming one is QE, most people expect that QE is a given however, there are a couple of fundamental reasons why the Fed may not act on Thurs. e.g. Looming fiscal cliff (what if they have no more bullets), also the actual stock of treasuries or MBS available to buy. Personally, in relation to QE i'm erring on the side of them probably going but i think it's only marginally in favour of QE3 (55-60% probability). My point is though, understanding these issues can help your p/l a LOT!
ps some days, I don't even look at charts when I trade but then hey i'm only a rookie member
This may help you in your journey to grasp some fundamental analysis techniques:
US GDP ---> Earnings ---> S%P500
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