Technical Trading or Fundamental Trading – What works for you?
In This Video:
00:40 How Technical Trading has Benefited Me
01:49 Technical Trading gets Another Bonus Point
02:56 No Profitable Fundamental Traders found
The debate continues here in London regarding the benefits of either being a technical trader or a fundamental trader.
So let me explain exactly what I have been up to right now.
Hi traders, it’s Andrew Mitchem here, the Forex Trading Coach. I’m here in London at the last day of the second conference that I’ve been to and just had a really exciting week here. Met a lot of fantastic people, a lot of traders and a lot of people within the industry and, it’s just been really interesting to see the difference between talking to the people who are pro-fundamentals in trading and the other people, like myself, who are more into technical trading.
How Technical Trading has Benefited Me
And, I just wanted to run through, with you, a few trades that I’ve taken and why I strongly believe that the technical’s definitely the way to go. Last week, on the video, I mentioned about a trade on the weekly chart that I mentioned about the Aussie/US Dollar (AUS/USD). Well, that fell and took my profit target out and made about 380 pips – exactly a four to one return on that trade, so in other words, risking half or one percent, making two percent.
It took about seven or eight trading days to get there! The interesting thing is that it actually hit the full profit target on the release of the Australian interest rate drop. And so, I suppose, you could say the fundamentals dropped the Aussie down a touch further with that interest rate drop. But for me, as a technical trader, the charts were screaming out, were strongly suggesting, sell the Aussie-US and that was, you know, ten days prior to that announcement.
And, like I said, I actually mentioned that specific trade to my clients and I mentioned it last week on the video saying it was still open – it’s now gone and hit the full profit target.
Technical Trading gets Another Bonus Point
Well, I’ve been away personally, I’ve only been trading the daily charts. I haven’t really had time to trade anything, sort of, more shorter time than that but I’ve had trades here on the New Zealand Dollar/US Dollar (NZD/USD), a short on that, and that’s made a two-to-one trade. Also took a short position on the New Zealand/Yen (NZD/JPY), and again, all mentioned to my clients, made three to one. The other interesting thing is, yesterday we had the New Zealand Dollar (NZD), the unemployment rate increased. It was worse for the economy. Yet, the New Zealand Dollar has strength and quite considerably from the big fall it’s been in.
Those two trades I mentioned – the New Zealand/US (NZD/USD) and New Zealand/Yen (NZD/JPY) – they were taken at the end of last week, on the dailies. They’ve hit profit – down at the target that I was aiming for. But now, after the trades are out, they’ve now sort of turned around and the New Zealand Dollar’s now, as I speak, it’s climbing up quite strongly. But that’s against the fundamental announcement of an increase in the unemployment rate, which of course is bad for the economy.
No Show by Fundamental Trading Profits
And so, again to me, it’s the fundamentals are fine to have a concept of and to know what’s coming. But the technicals, the charts, they show me what’s happening far in advance or the likely outcome, far in advance, and so to me, as a technical trader, I can only look at the charts and trade what I see on them and not what I think is going to be the news announcement.
So, as I said, at these shows, it’s been really interesting. I’ve not yet met someone here at this show, and the previous one, who’s a fundamental trader and who’s actually made any significant returns from their Forex trading but met a lot of people here who are technical traders that have done very well. And, my clients even though I’ve have been away for the last, sort of, almost two-weeks now, I’ve been posting my daily trades, still, from here and clients have made some really significant money.
So, had a great time over here in London and this time next week, I’ll be back in New Zealand and I’ll look forward to bringing you some more information about the wonderful world of Forex trading and how you can benefit from that by being a really good technical trader and understanding candle patterns and just follow along, if nothing else, just follow along with the information that I post, on my site, each day and the likely strengths and weaknesses, you know.
There’s plenty of people who’re making really good gains from just following that free information on a day by day basis because it helps them to keep on the right side or the likely right side of the market using their own strategies so, once again, this is Andrew Mitchem, the Forex Trading Coach, coming to you from London.
I look forward to talking to you this time next week.