Jump to content

I have a dilemma :)


Recommended Posts

Is it possible to trade relaying only on Technical Analyses... or are we fooling our self's.... do we need to combine it with Fundamentals? (I don't mean avoiding the news :D)

 

How many of you do that? Fundamentals and Technical....

 

How many only Technical? And do you still have success?

 

Thank you all

 

Barbara

Link to comment
Share on other sites

Re: I have a dilemma :)

 

Hi Barbara,

 

It depend on individual. There are traders who use TA only and FA only, and yet they trade

well and successfully. Example are Jill Roger in FA and Ed Seykota in TA.

 

I believe trading is a probability game that need lot of discipline, patient and right mindset.

Master them and u master the game like those master or guru in this game.

 

Personally, I refer TA as all is in the chart.

 

Just my own personal comment. Correct me if I am wrong.

 

:)

Link to comment
Share on other sites

Re: I have a dilemma :)

 

Each person has his/her own way of trading. It all depends honestly on you and how much you feel comfortable. I tend to be more Technical than fundamental because I feel it is better for me.

 

I hope you can understand what I mean.

 

Best wishes,

a New Year 2011 has come, and the challenge has just started 8-)
Link to comment
Share on other sites

Re: I have a dilemma :)

 

Ciao,

I am a TA and believe that all FA is dynamically factored into the market.

I also believe that the market behaves as a crowd which can be analyzed in the same way that inferential statistics can, say, predict viral activity. :)>-

When mind lingers in one place efficiency is lost
Link to comment
Share on other sites

Re: I have a dilemma :)

 

I was developing my system for 7-8 months and now i finally realized trading trough simple technical analysis

is much better. I don't know English perfectly and I don't understand news and announcements, so I'll take care of

fundamental analysis later. I think that TA is enough alone.

In my experience the best thing you can do in tech analysis is to use chart patterns

double/multiple tops and bottoms. Use this chart patterns combined with drawing support and

resistance lines (previous highs and lows) and you will get a 80-90% winning chance.

The first time that I used this strategy i earned 96 pips in one trade (M15 graph, the trade lasted less than an hour).

It's pretty simple and very profitable. I hope this will help.

He who can, does. He who cannot, teaches.
Link to comment
Share on other sites

Re: I have a dilemma :)

 

I was developing my system for 7-8 months and now i finally realized trading trough simple technical analysis

is much better. I don't know English perfectly and I don't understand news and announcements, so I'll take care of

fundamental analysis later. I think that TA is enough alone.

In my experience the best thing you can do in tech analysis is to use chart patterns

double/multiple tops and bottoms. Use this chart patterns combined with drawing support and

resistance lines (previous highs and lows) and you will get a 80-90% winning chance.

The first time that I used this strategy i earned 96 pips in one trade (M15 graph, the trade lasted less than an hour).

It's pretty simple and very profitable. I hope this will help.

 

In which pair my friend ? Can you give a screenshoot of your charts please ?

 

Thanks.

Link to comment
Share on other sites

Re: I have a dilemma :)

 

I tried for a year of demo trading before having any success in technical analysis. I think you should take note that trading in different time frames as well as different market times may require different strategies.

 

I personally do not trade anything less than 15 mins since the prices would be too "noisy".

I do check the news daily for any major news releases, and tend to avoid trading an hour before and after the news release.

 

As for news trading, you'll need a good source for that and it often requires alot of money (not to mention a reliable broker), so unless you can afford that, stick to technical analysis. News trading is also not easy to pick up (of course maybe you're better at that then me) and you'll need to filter out the news that you have in hand as one may contradict the other.

 

It all boils down to personal preferences, these are just my 2 cents.

Link to comment
Share on other sites

Re: I have a dilemma :)

 

The key is not trading on purely what your technical indicators are telling you, but in building up a compendium of knowledge about the way the market moves which, in combination with your indicators (or system) can turn profits.

 

It is highly unlikely you will find a purely mechanical trading system - i.e. buy when this indicator crosses another and so on. That is only a signal. You will need knowledge and screen time to be able to pick when this signal is correct and when it isn't.

 

Fundamentals need not necessarily come into play, except around news time. I am only speaking about intra-day trading, however. Position trading is a different matter and you would want to pay closer attention to the fundamentals in these instances.

Link to comment
Share on other sites

  • 2 weeks later...

Re: I have a dilemma :)

 

fxlauk,

 

First I think that you need to deside what you believe about the markets, How do you feel that they work, what do you believe to be true in the markets. Once you identify that you can break it down even further. Are you a long term guy, day trader, or scalper. Find out about yourself first, find some truth in the market, and then develop your trading plans..... I hope this helped a little... If not, sorry

 

 

Take Care

ladder105

Link to comment
Share on other sites

  • 2 weeks later...

Re: I have a dilemma :)

 

I would suggest using TA for shorter term trading, and FA for longer term positional trades.. coz structural changes in markets take time to crystalize, hence it would be very difficult to use a long term view to trade the shorter term noises...

 

Juz explore jim rogers style.. his fundamental calls are really very sound.. ie his call for bullish commoditiies, bearish dollar, which was made years ago.. HOWEVER, he would have lost a lot of $$$ following his analysis years ago coz the markets onli act accordingly recently... :)

Link to comment
Share on other sites

Re: I have a dilemma :)

 

I would suggest using TA for shorter term trading, and FA for longer term positional trades.. coz structural changes in markets take time to crystalize, hence it would be very difficult to use a long term view to trade the shorter term noises...

 

Juz explore jim rogers style.. his fundamental calls are really very sound.. ie his call for bullish commoditiies, bearish dollar, which was made years ago.. HOWEVER, he would have lost a lot of $$$ following his analysis years ago coz the markets onli act accordingly recently... :)

 

 

Very good point :shand:

 

Barbara

Link to comment
Share on other sites

Re: I have a dilemma :)

 

hi everyone,

very good points already mentioned. I find that what most people call technical analysis does not include a thorough understanding of how the big players move the markets. The market game is very similar to a food web with a predator hierarchy. Like the lion-one of the elite predators in it's environment-a player like Goldman Sachs has superior attributes and ridiculous techological advantages which enable Goldman to get the fresh kill and the best animal parts to eat-which would translate to best fills and best exits in trading or in simpler terms best positions and advantageous knowledge/perspectives in the markets. Then after the lions are done with their fill of the best parts, the 2nd tier predators like wild dogs enter-in the markets these would be smaller & well financed trading firms who make it their job to track what players like Goldman and Renaissance Technologies are up to. These smaller less powerful but still very formidable groups then step in and snatch up the next best animal parts, prices, fills, positions, exits, etc...then come the birds, insects, and fungi-that would be us :). On an intraday basis the sequence I just mentioned can sometimes be as fast as a few seconds, on a swing trading timeframe a few days and/or weeks. I believe this sequence which is represented practically the same on different timeframes is why people say the markets are fractal or self-similar in nature. My point is that if you keep studying the true technical analysis of the professionals, you will start to see the chart as a map of the fundamental activity. This fundamental activity has timing and scheduling factors as well as seasonality factors, and these details will then be anticipated in the charts by knowing the significant date/time details of fundamental schedules. Most people with PhDs and so called market instructors & news correspondents endlessly complicate the fundamentals of the markets so they can have jobs in my opinion. For if they really distilled the down to earth reality of the markets in words, they might say the same thing every day. "Today the brightest and most aggressive trading firms snatched up the best prices and then took the market up, those that were alert enough to see what happened followed behind, and those that didn't see the hunt coming may have been eaten or left in the dust." With a little common sense, a passion for seeking out & studying the true professionals, a basic understanding of market mechanics & schedule structures, and an evolving ability to read the chart data of price, time, and volume....Technical Analysis becomes the art of reading fundamental analysis in it's purest form imho

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



×
×
  • Create New...