Do fundamentals matter ?

[hatemypips]

I suggest not to use Fundamentals for day trading because it is irrelevant. If your trading as long term or short term moves then fundamentals do matter.

Indeed, intraday price movements involve a lot of noise which complicates risk management. You can be correct about direction, but tight stop loss can be triggered due to random volatility.

 

[LuckyMac]

Yes you should have a well balanced analysis structure. Technicals for me are most important but fundamentals play a part

 

[crud-cutter]

Since I'm predominantly a News trader ( FX, Oil, Gold, Equity Indices) , Fundamentals matter a great deal to me. All of my trades last less than 16hrs since that is as long as I can work at my desk before I need a long break or some sleep.

I'm not saying that Price Action, Market Internals, Market Correlations, Orderflow etc. don't matter.
They ALL matter but some matter more than others to each individual trader - depending upon your skills resources and timeframe and style!

 

[ffsear]

Yes. Sometimes I will take a trade purely on a fundamental basis without a look at a chart.

 

[crud-cutter]

Here are some examples of short lasting fundamentals for the US equity Indices today :

At 18:00 (UK time)there is a US10yr Bond Auction. Depending upon whether it is 'successful' or not, this could influence the US Equity Indices for the next 1hr or even longer.

Later there is the 'Market On Close ignition' but this is only valid for 1hr and 50 minutes (until the Market On Close confirmation).

The Market on Close confirmation is only valid for 10 minutes.

Next is the NY Cash Markets close. Valid until the NY cash market Open tomorrow . - Why? Because large US cash market traders will be unable to exit their positions until there is sufficient volume again although they can still hedge positions in the Futures market (until Futures Close) if they are desperate.

Then there is the US Futures close. Valid for the same reasons as for cash market close.

All of these Fundamentals are potentially tradable!

 

[LuckyMac]

I think technical analysis is better for short term trades. Fundamentals can be misleading at time and also difficult to incorporate when technicals may be saying one thing and the report just out saying another

 

[Henow1969]

Fundamental analysis is a very important issue in the forex market. This fundamental analysis will require you to make a deposit of your deposit. If you think you have made a 100 deposit. So you have to keep in mind that whatever trade you give, if that trade goes in the opposite direction from where you started, and if you wish that I had a loss, then I will not lose more than 1%. I have to find out.

 

[1nvest]

If I'm trading live and looking to trade safe, is it important to consider the fundamentals during day or swing trading?

although the changes to fiscal or economic policy doesn't necessarily change day by day, the fundamental aspect can determine your overall trend bias, as well being cognisant of when those changes are announced may well impact you.
so regardless of timeframe, if you know an interest rate change is coming into effect for example, there will naturally be increased volatility and could well in the longer term again affect the underlying trend bias
it will still show up in your technical indicators, but the indicator will simply tell you what has happened, not necessarily why

 

[J Livermore]

If I'm trading live and looking to trade safe, is it important to consider the fundamentals during day or swing trading?

One thing you could consider is to use fundamentals to decide what size position to use in which direction.

For example, if the fundamentals say a stock is a buy and is going higher you may want to use a full size position when the technicals and/or charts say to buy.

Conversely, if the technicals or charts say a stock is going to go down, but the fundamentals remain bullish, it means the timing is wrong so maybe you could go short with a half position or something even smaller. Using a tight stop of course.

You don’t always have to be out of a position when the fundamentals and technicals don’t agree.

 

[LUCAS_NONOOB]

That's true! Swing traders primarily go with technical analysis due to its short-term nature.
But fundamentals analysis can be used to enhance the quality analysis. Using both is the best strategy I believe.

 

[Marcellus8610]

About two years ago I was trading on a fundamental basis in the long term, but unfortunately this did not bring good enough stable earnings for me. Therefore, I decided to switch to medium-term and intraday trading, but at the same time, I still successfully use the skills of fundamental analysis.

 

[jackthefxtrader]

For me, fundamentals and technicals both matter a lot.