Fundamental or Technical- novice traders should start with?

Gorh posted:

snapdragon1970 posted:

Cloudballs posted:

snapdragon1970 posted:
80% fundamental,20% technical this is what professional hedge funds use,price needs a reason to move, very little to do with technical's ,confirmation and entry point come a second.

Wow, is that really true? I have been 100% technical and have ignored fundamental until now. What about short term trading? Still need fundamental for that?

Professionals don't stare at the screen all day long looking for a technical setup,why should you,just not the way the market works, As Traders we need something to push the price around otherwise its mostly noise intraday especially on the majors, If your scalping on 1 min time frames not much need for fundamentals:)
 

What about news trading within several minutes duration movements. You should to be up to date with information about politics and macroeconomics to forecast probably movements.

agressiveFX posted:
As a long time Crypto trader I can tell you most people who use Technical Analysis are not successful. I'm 2 month into Forex and been killing it so far. Check my profile for proof

HankyPanky posted:
I take fundamental very seriously. There can be a lot of information but it really helps give longer term direction

togr posted:
You cannot separate technical and fundamental analysis.
I suggest to focus on technical and use at least a bit of fundamental to avoid major economic news and counter trend trading.

togr posted:
You cannot separate technical and fundamental analysis.
I suggest to focus on technical and use at least a bit of fundamental to avoid major economic news and counter trend trading.

maria_taylor posted:

togr posted:
You cannot separate technical and fundamental analysis.
I suggest to focus on technical and use at least a bit of fundamental to avoid major economic news and counter trend trading.

Exactly, only using both technical as well as fundamentals will result in profitable trades.

mrtodd posted:
So many ways to trade and so many different personalities trying to trade. What works for one person may not work for another. I live off of technical analysis. The only use for fundamentals I have is when to avoid trading. I do not trade high impact economic reports and I tend to try and exit or hedge my positions when a high impact report is coming out. I look for trends for trade direction and I'm reluctant to trade in an exhausted trend and usually wait for confirmation of a trend change before I re-enter a particular market. But that's just my style and it will work for some people but not everyone. Our personal trading journey's lead us to experiment until we find something that works for us.

maria_taylor posted:
It is a subjective matter but I feel that to tame this random forex market and make the best out of it, technical and fundamental analysis is of considerable help, at least it is for me and many traders like me I guess.

SwapTrader posted:

maria_taylor posted:
It is a subjective matter but I feel that to tame this random forex market and make the best out of it, technical and fundamental analysis is of considerable help, at least it is for me and many traders like me I guess.

Let me clarify my point. Fundamental analysis is a forecast of what is likely to unfold into the future, based on a wide range of factors. Technical analysis looks at price action today to inform us about what is happening now. You can combine these two methods to gain insight into what is likely to happen next, and to time market entries and exits based on what is happening today. So from this perspective, I agree with you and others that technical and fundamental analysis ought to be combined.

But here's the problem. Technical and fundamental analysis evolved from the stockmarket, where all participants share a common cause...to invest for profit. This is simply not the case in the Forex market, where around 95% of its volume is derived from participants that could not care less about investment returns. For example, nearly half of daily Forex turnover represents foreign exchange swaps, the simultaneous purchase and sale of identical amounts of one currency for another with two different value
dates, with the single aim of swapping interest rates. Another 19% is derived from international trade, tourism, and foreign aid transactions. In fact, spot currency transactions represent just one-third of the daily turnover, and the vast bulk of this is interbank activity. You and I, us retail traders, represent just 4%-5% of the daily turnover, and we are the only players seeking investment returns from speculative activities.

Effectively, a 1% fluctuation in the 95% group will translate into a 20% impact on the 5% group...us...with that impact having no relationship whatsoever with current technical or fundamental factors. In the long term, I agree that fundamentals will dictate the ultimate value of a currency, but can you sustain those 1% fluctuations along the way? If not, fundamental analysis may add no value to your strategy. Better to evaluate currency strength-weakness, and follow the money flow!

sarahlawrence posted:
Everyone has different ways of approaching trading. But I find both FA and TA to be very important for successful trading. Fundamental analysis will tell you about what is happening in the economy and markets whereas technical analysis helps in deciding the right entry and exit points in the trade. So, pay attention to both of them.