Technicals or Fundamentals?

[Mysticforex 13]

I know a few traders who are strictly Technical traders. Don't give a Rat's ass about Fundies.

I on the other hand try to incorporate a bit of Fundamentals in my trading. (though to be honest by the time I notice a fundamental piece of information it is usually already priced in )..

I guess a lot of what you prefer depends on your goals and what TFs you trade.

For instance, I wouldn't care about what I think the BOE is going to do 20 days from now if I am trading off a 5 min chart.

 

So my question is what would you advise a new trader to learn first, Technicals or Fundamentals?

[zdo 20]

So my question is what would you advise a new trader to learn first, Technicals or Fundamentals?

 

I would advise a new trader to learn the 'one' that energizes / interests him most...

[Predictor 11]

Most short term traders trade on technical data because the fundamental data is too slow. I would rank ability to read tape and technical as more important for most trading styles. However, it pays not to be a "one dimensional trader"... that means understanding how larger institutional traders may be viewing the market based on global macro news and events.

 

The dichotomy between technical vs fundamental is flawed. You need to know what drives your market..

[Mysticforex 13]

I would advise a new trader to learn the 'one' that energizes / interests him most...

 

 

Right On...

 

I had forgot the "Passion" I had in the beginning of my trading. I used to dream about charts and price movement.

[wrbtrader 10]

...So my question is what would you advise a new trader to learn first, Technicals or Fundamentals?

 

I've been using both for +20 years although I don't refer to it as fundamentals. Instead, I prefer to call it exactly what it is...economic reports, FED/ECB/IMF events, global economic events, geopolitical events, breaking world news or anything else that has an impact on whatever it is you're trading...all under the umbrella of what I refer to as "key market events". Also, as a futures trader, I rarely see key market events priced in. Yet, I do know stocks can have already priced in pending fundamental info.

 

Therefore, I highly recommend newbie futures and forex traders use both for their market context. Yet, most of the time you don't need to worry about what's occurring in the key market event. You just need to wait and see if the key market event is going to cause a change in supply/demand.

 

If it does, that's where your technical analysis comes into play.

Edited December 12, 2012 by wrbtrader

[Jack Francisco 10]

it's probably easier to understand the technical side first before knowing the fundamentals. At times fundamentals can give wrong information on the new release days or what could possibility happen. So have both in mind before trading but use them at 50/50 as one could go the wrong way and you have the other to back it up.

[Galacticus 10]

> Technicals or Fundamentals

 

Neither one. Trading is not about prediction ...:crap:

 

Most short term traders trade on technical data because the fundamental data is too slow. I would rank ability to read tape and technical as more important for most trading styles. However, it pays not to be a "one dimensional trader"... that means understanding how larger institutional traders may be viewing the market based on global macro news and events.

 

The dichotomy between technical vs fundamental is flawed. You need to know what drives your market..

[thearabsmith 10]

IMHO... I started by learning T.A. and on my journey found myself delving into the fundamentals. The two both seek the same goal, but the big advantage to technical analysis for me is that Technical Analysts are able to arrive at actual price targets over shorter time frames. So My primary focus as a trader involves technicals as i'm working to short time frames (under 3 months), however, unlike some technical analysts I do believe that fundamental analysis has value. I believe it serves as a foundation to interpreting charts across longer time-frames, and aids in understanding what is possible and likely.

 

ATradersNotepad Blog

[zdo 20]

I've been using both for +20 years although I don't refer to it as fundamentals. Instead, I prefer to call it exactly what it is...economic reports, FED/ECB/IMF events, global economic events, geopolitical events, breaking world news or anything else that has an impact on whatever it is you're trading...all under the umbrella of what I refer to as "key market events". Also, as a futures trader, I rarely see key market events priced in. Yet, I do know stocks can have already priced in pending fundamental info.

 

Therefore, I highly recommend newbie futures and forex traders use both for their market context. Yet, most of the time you don't need to worry about what's occurring in the key market event. You just need to wait and see if the key market event is going to cause a change in supply/demand.

 

If it does, that's where your technical analysis comes into play.

 

The percentage of noob readers who really get what you just said will correlate+ and highly with the number of those noobs who survive and thrive.

A while back in another thread I asserted that fundamentals had no numbers involved at all. I bet 90% of those who read that thought I was being facetious. I wasn’t.

Fundamental is subjective and is in relation to quality.

Technical is objective and is about quantities.

 

Predictor mentioned “The dichotomy between technical vs fundamental is flawed..” Taking that a bit further… The dichotomy has been created and cultured ‘out there’. It’s not a dichotomy at all – until you make it one. Until you make it a dichotomy, it is simply two separate realms. If you are a noob, you don’t have to fall for the enculturation and ultimately false and misleading definitions and paradigms... and, furthermore, developing ‘skills’ at using quantities to guess at fundamentals is a trap walling you further and further away from being in touch with genuine fundamentals.

Basically - those Noob traders who do not get encultured into confusing fundamentals with “guessing what effects a report or news or “dominant concern” will have on the market and price movement” have a better chance of surviving than those who do fall for such nonsense.

 

...and btw, if you think I’m saying what wrbtrader is calling "key market events" is useless information and can’t be utilized, then you really missed the whole point… think again.

[zdo 20]

Tricked by numbers

 

(btw If you don’t think you are going up against ‘masters’ when you trade… if you think this ‘industry’ is neutral.. that it is not out to get your money - then ignore the following bs about the numbers trap)

 

Half the retail brokerage tv and print ads are about a trader fixing to use some 'numbers' to make a trading decision. They still fill days with number talk on financial tv ( … or do they? I haven’t had CNBC on in 20 years.) Here’s a major part of what’s going on with all that number crap/trap

Brawlers attack the head. Fighters attack the body. But masters distract the mind.

… Brawlers swing to knock off the most vulnerable target on the body - the head. Fighters may also go for the head, but only by setting up the head through the science of threatening vital areas of the body… positioning and angling...

 

But the great masters … use any and all of these things, but only to set your mind in a place, to fixate your intention on a target - and while your mind abides there, they effortlessly, invisibly neutralize you...

These openings our conscious mind cannot imagine are due to what Nobel laureate Daniel Kahneman calls “focusing illusion”… Like a magician’s sleight of hand, the truly great in any discipline tempt us to focus in one direction and amplify its importance which minimizes our awareness in other directions - which creates openings to ...vulnerabilities.

Scott Sonnon (I acutely paraphrased it, btw)

 

(again - if you think they are not truly great… great at whelming you with numbers, news, and reports, a la http://www.traderslaboratory.com/forums/market-analysis/12470-important-fundamentals-week.html, great at sucking you into thinking the numbers are getting you at the fundamentals… then ignore.)

 

The point? Point is –

DO NOT get educated about technicals and fundamentals, etc. That’s the obvious, easy, delusional way. Take the subtle, difficult, truth oriented way. Discover and Create your own way.

“He who learns must suffer. And even in our sleep, pain that cannot forget falls drop by drop upon the heart, and in our own despair, against our will, comes wisdom to us by the awful grace of God.” Aeschylus

[edgararakelyan 10]

Technicals definitely for me. Fundamentals seem very boring to me and the feel when you predict a move and make money off it from a chart is amazing.

[MadMarketScientist 11]

Technicals definitely for me. Fundamentals seem very boring to me and the feel when you predict a move and make money off it from a chart is amazing.

 

Your trading for the rush! Truth be told, I do that too ... but I limit the downside by using option calls\puts

 

MMS

[samuel23 10]

I know a few traders who are strictly Technical traders. Don't give a Rat's ass about Fundies.

I on the other hand try to incorporate a bit of Fundamentals in my trading. (though to be honest by the time I notice a fundamental piece of information it is usually already priced in )..

I guess a lot of what you prefer depends on your goals and what TFs you trade.

For instance, I wouldn't care about what I think the BOE is going to do 20 days from now if I am trading off a 5 min chart.

 

So my question is what would you advise a new trader to learn first, Technicals or Fundamentals?

 

Very good question as Technical & Fundamental analysis are both important factor to be considered in Forex trading. Personally, i would go for technical first and then Fundamental but with experience in trading i would say that we should learn both well. We should not consider one more than the other.

[Larry1234 10]

I would rather suggest Technical, Because understanding the fundamentals is basically understanding the financial statement analysis and time horizon for this is more compared to technical analysis.

 

If the objective is trading, go for technical analysis or if the objective is long term price appreciation, go for fundamental analysis.

 

 

 

 

I know a few traders who are strictly Technical traders. Don't give a Rat's ass about Fundies.

I on the other hand try to incorporate a bit of Fundamentals in my trading. (though to be honest by the time I notice a fundamental piece of information it is usually already priced in )..

I guess a lot of what you prefer depends on your goals and what TFs you trade.

For instance, I wouldn't care about what I think the BOE is going to do 20 days from now if I am trading off a 5 min chart.

 

So my question is what would you advise a new trader to learn first, Technicals or Fundamentals?

[sergso 10]

You have to consider both to make it big.