Technical and fundamental
Most trading gurus advise you to focus on the technical aspects of the price and leave out the fundamentals. Most individual traders are heavily focused on technical indicators but simply underestimate the fundamentals of the economy.
This is partly understandable, as fundamentals are tedious. They are also often confusing and contradictory. In the words of the famous Yogi Berra: “It is difficult to make predictions, especially about the future”. If predictions are about the long term even worse, as the economy changes faster than the weather in Florida.
The fundamentals are fickle. They require context and this is usually only shown in a clear way a posteriori.
In this order of things, one of the situations I abhor most is when students tell me that they don’t care too much about the economic news that appears every day.
You can be very good at interpreting the technical aspects of charts and price evolution at any given time. But if you don’t take into account that perhaps when you have decided to enter the market it turns out that a relevant news is going to come out, then you will be totally exposed and your previous analyses will have been of little use (Boris Schlossberg).
From May 20, 2019 to May 26, 2019
Momentum total trades per week: 7
Reversion total trades per week: 0