There’s a pile of traders out there that feel “the fundamentals” are a complete waste of time. Following the charts day by day, minute to minute, hour by hour, “riding the waves” and trading the technicals – with little or no regard for any such thing as a “fundamental”.
This works great of course…….until it doesn’t.
A “technical limit” provides a “fundamental challenge” in that eventually ( as markets will always push further in either direction than the average trader can bear) “all technicals” will be broken/shattered creating further “fuel for the fire” in an industry “built” on the sale of technical analysis, and the promise of eternal wealth – while the fundamentals continue to lurk in the under current.
Can you consider making a living trading with “no concern” for the fundamentals, trading only the technicals?
I’ts my belief, that the answer to this question is no.
Eventually…..”all technicals” will be broken as the simple mechanics of the system “require” this to be the case.
Markets tell you to buy the RSI at level “x” and sell MACD at “y” as it “commands” – all-knowing the indicators / levels are meant to be breached, pushing “past” any extreme, essentially “snatching your dreams” with little concern for “anything you’ve learned” about technical analysis, time and time again as the fundamentals continue to hide in the shadows.
Do not leave your indicators set at the “pre defined” levels suggested to you in your trading platform! They are designed to be broken!
Learn to “compliment” your short-term trading with a “sprinkling” of the fundamentals as you really can’t survive without both.
Do I like coming home to “yet another day” of a counter trend rally? Absolutely not.
Am I at all worried about it?
What do you think?
Back in the game……nothing has changed.