Reading NEWS Daily would make you a BETTER Trader Overall!Well, there are three types of traders we can come across and all of them believe their method of trading yields them profits, be it using only indicators and price action (Technical analyst) or reacting to news whilst trading (fundamental analyst) or trading according to market sentiment (sentimental Analyst)!
In most circumstances we can only see that some traders lets take for instance technical analysis traders, they only perform their trades based on analysis of the charts by using patterns and indicators!. While there may be few traders who combine Both fundamental and technical analysis to execute their trades, most of them do NOT prefer to do this method particularly as they believe "its take a lot of effort to combine these two techniques which would eventually result in executing less trades when compared to using single method!"
Whereas the above statement holds true, it can also be fairly said that the combination of the three techniques (technical, fundamental and sentimental analysis) gives a trader more confidence and trust in his/her analysis!. Take for example myself, i used to execute around 2 trades daily when i was basing my analysis solely on technical perspective. These days i only execute around 5 trades a MONTH due to i combine all these 3 techniques which gives me more confidence and trust in executing my trades! I also noticed that since my trades are high probability setups, my win rate is way better when i was using on technical analysis alone. These days i hardly do DAY trading as i spend most of the time reading news and chart analysis to find high probability trades on higher time frames (DAILY, WEEKLY & RARELY 4HR). What i have come to realize in all these years is that SWING trading gives me more accurate results and high win percentage. I do NOT expect to double my account in a month's time, but i trade using risk management and just execute enough trades to make what i can without being stress and blowing up my account!
So my advice to all you guys would be to try to combine both fundamental and technical analysis to execute your trades. Here is a big TIP for those that only use technical analysis to execute their trades: TRY TO SPEND 1-2 HOURS A DAY READING NEWS ON APPS SUCH AS INVESTING.COM (BOTH ANALYSIS AND NEWS SECTION), MYFXBOOK NEWS SECTION AND TRADER SENTIMENT SECTION, HAVE A LOOK AT SOMEONES ELSE IDEAS ON TRADINGVIEW.COM If you keep this a habit of reading news and analysis together whilst performing your own too, you will develop a GUT feeling technique that is unique and which will likely tell you where the market is headed prior to you even performing your technical analysis! Its a very special technique but it takes time and habit to develop.
Here we see the main of GOLD (XAUUSD) pair i has a gut feeling would reverse and dip slightly because markets were in RISK ON mood. Now this pair is on its way to form HEAD AND SHOULDERS PAttern which is on the verge of breaking the neckline. Now the pattern is not yet complete because the technically the neckline has not broken, but i have a GUT feeling that it would break soon enough and target the ascending trendline beneath at 1260.000 level.
its a very special technique and i hope some of you could combine them and use it to your greater advantage! Cheers
