Each trader will figure out whether he like fundamental trading or technical trading.
Fundamental Trading is: gathering economic information, following the news and
current economic events to make decisions on when to enter a trade.
Technical Trading is: reading indicators to determine the best place to enter a trade.
Some traders like to follow the news and economic trends then decide when they will
enter trades. This method does take a lot of time and study to make a proper decision.
Some traders like to look for signals on indicators to make their decisions to enter trades.
This can be confusing if they do not know how to use the indicators and read the signals.
We heard a long time ago from a seasoned trader that he had a specific way he used
Fundamental and Technical information to trade.
He said:
1. He would get fundamental information
2. Make a decision as to which way he thought the market would move based on
this fundamental information
3. Then he would check the technical indicators to confirm his decision.
We came to the conclusion that it would be a good idea to know when the fundamental
information was coming out then trade from the directions the technical indicators indicated.
This is just our way of approaching the market. This does not mean it is right or wrong.
It may not be the best or worst way to trade but it is effective for many traders.
Check out the video for an additional perspective.