As most of you may know, there are 2 types of ways to trade the market. You can trade on Fundamentals or you can use technical data.
I say “or”, but what I really mean is that it is actually necessary to use both. Below is a brief explanation of the 2 trading styles:
Fundamental – This is where you use the news and opinions of specialists, to form your trading strategy. For instance, if a healthy report comes out on Unemployment numbers in the US, then it may be worth going long on the USD (Greenback) against one of the other larger currencies.
Technical – This is where graphs come in. You use historical data and trend patterns to decide where your buying and selling entry points should be. There are many different studies and chart overlays that can be used in order to let you see some entrance and exit indicators.
For the type of trading I will be doing (Day trading and scalping) I will be using Technicals far more than Fundamentals. This doesn’t mean that I will be completely ignoring fundamentals though as, at certain points and times, they will be key to confirming trading signals highlighted by my technical analysis.
Alternalists 
Posted on June 24, 2013
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