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Being a Fundamental trader no matter what your time frame.
By Sean Hyman | May 26, 2009
The fallacy that traders usually get into is that fundamental analysis is only “news event trading”.
However, the biggest traders out there aren’t so much “news event traders” and yet they are still fundamental traders.
How? Because they keep in mind where interest rates and CPI are heading in the given countries. They watch the GDP growth to see how the country is growing, etc. They rank the ones that perform the best fundamentally and pair them vs. some of the worst fundamentally.
That gives them their pairings, no matter what time frames they look for entries into that fundamental direction.
So let’s say that they think the Aussie is one of the best fundamentally sound countries out there (and thus its currency too). And let’s say that they think that the U.S. is very fundamentally flawed and is one of the worst performers when it comes to their fundamental data overall. Then they’d want to look for buy technical entries into the AUD/USD pair. That could be on a one hour chart, 4 hour, daily, 5 minute chart, etc.
No matter their holding time length…they buy the best and sell the worst. That’s how many big institutions look at fundamentals and technicals. They technically trade in the right fundamental direction on the best pairings.
Tags: analysis, AUD, Aussie, currency, data, fundamental, fxedu, interest, interest rate, interest rates, news, pair, Sean Hyman, technical, time, trade, trader, trading, U.S., USD
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