Do You Think Fundamental Analysis Is Necessary?

Thank you for writing those wonderful books.

They are loaded, no fluff, no story telling. Just few meaty pages.

After reading the books , I am taking actionable steps to improve my analysis and trading, In writing my action plan, there are a few things, I need you to clarify for me, they include:

Before I came across your write ups, my method of trading the market is through fundamental and sentiment analysis, as thought by Jarratt Davis.

This method works but the risk to reward is mostly 1:1 or worse, which is why I needed a better way of entering the markets.

Now I can entered trades that have risk to reward that is very high, in some cases as high as 1:10 and this allows me to take profit on my positions in stages .

Though my stop placement  is more aggressive than the method you though in your books.

I reasoned if the R:R is that good even 50% win rate will make me very successfull.

I place stops at the high of the trigger Pin or Engulfing Pattern after a minor or major stop hunt into previous high or low in  the S/D zone. ).

My Questions is do you think I need my real time news feeds and fundamental analysis to make money in the market or I should just focus on trading the majors or any pair I choose, since I can now see the foot print of the Large institutions?

I use zerohedge.talkingforex.com, fxstreet.com, forexlive, forexfactory.com, bloomberg.com/markets/currencies and actionforex.com for my fundamental analysis. for my for my fundamental analysis.

How many Screen do you consider as ideal for trading Forex and what will you have on each screen?

You did not write about take profit models, that you use.

Please kindly educate me about nwhen to take the chips off the table.

Do I take the off around the 20 day ADR or around same/higher time frame S/D zones or at Obvious support/ resistance zones or is there a way of reading the foot print of the banks when they are closing their profit for the day or at the end of the particular trading session am trading?.

Please help me with take profit models.

Thank your for your unflinching support. You are a great trader and teacher!

I wish you and your family, the best of the season.


My Response:

In my view, real-time news feeds and fundamental analysis aren’t necessary to making money in the market. I do keep an eye on significant news releases, but they don’t play a role in my market analysis.

My approach leans more towards sentiment/order flow analysis, which is based on traders’ behaviors rather than news or opinions.

I’d suggest sticking to trading the majors and understanding the mechanics of how bank traders operate in the market. Some of my upcoming articles will provide more insight into their trading habits and how you can benefit from them… so stay tuned!

As for screen usage, I just use one screen.

I’m not a frequent trader in terms of the number of trades I place, so I don’t need to monitor multiple currencies all at once.

In terms of profit-taking, I plan to write some articles on this subject soon…

It got delayed due to me focusing on creating free books and other resources for the site.

Explaining my profit-taking methodology via email would be quite lengthy, but here’s the general idea: it’s centered around understanding the strength of the supply/demand or buy/sell zone which has formed in the market. I use a method to determine the strength of a zone, which is not based on the movement away from the zone.

Instead, it’s about understanding the volume of buy or sell orders coming into the market when the banks place their trades, causing the zone to form.

Hope this helps…

PAN.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.