How many traders rely strictly on technicals in your intraday trading? Many veteran traders like Linda Raschke has mentioned that good traders need to have a balance of both technical and fundamental trading. In this thread, I hope to expand the fundamental side of trading for intraday trading.
How many of you read the papers everyday to gain a macro view on the global economy? There is a correlation between various markets. For example, the Nikkei tends to follow the US Markets. Therefore US Market news tend to be a leading indicator for the Nikkei action the following day. It is quite ironic due to the fact that Tokyo/Osaka standard time is approx 12 hours ahead of NY time. Yet investors and traders glue their eyes on the S&P, Dow as if they are afraid to make a decision without knowing what is going on in the US. I am sure Aussie traders or Germany traders have some input on market correlations.
Secondly, how good are you at analyzing sectors? Are you aware of interest sensitive sectors? Sectors that ppl flock to when banks/securities sectors are flat or down? The stock market is a giant arena full of hopes and dreams for many investors. Why do US stocks have alot of high flyers? Do you really think it is possible that these companies gain millions of dollars in capital overnight? These are the hopes and dream stocks. Watch for these when all other stocks lag. These are what I like to call pure speculation stocks.
Let's take a look at yesterdays action (July 10, 2007). A trader well informed of fundamental news especially with the subprime mortgage panic... would of known that any long setups would of been extremely risky. How many intraday traders actually went long? Did you profit from them? The easy money was on the short side.
For intraday index traders, it is extremely important to be well informed of fundamental news behind various sectors, stocks, commodities, currency, etc.. All of these have an impact on index futures. Stocks like Microsoft, Intel, Apple, etc... have a tremendous impact in the minds of traders globally. A rise in Intel can cause global tech sectors to lift. Where tech stocks are weighted heavily in the minds of traders in markets like Tokyo and Singapore... this news can lift the indexes. Hence you want to be focusing on long setups.
Please feel free to add your inputs. I am no fundamental expert by any means but hopefully this thread can help traders gain a macro of view of trading because intraday trading can easily get one absorbed too much in tick by tick action. Happy trading. ;)
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How many traders rely strictly on technicals in your intraday trading? Many veteran traders like Linda Raschke has mentioned that good traders need to have a balance of both technical and fundamental trading. In this thread, I hope to expand the fundamental side of trading for intraday trading.
How many of you read the papers everyday to gain a macro view on the global economy? There is a correlation between various markets. For example, the Nikkei tends to follow the US Markets. Therefore US Market news tend to be a leading indicator for the Nikkei action the following day. It is quite ironic due to the fact that Tokyo/Osaka standard time is approx 12 hours ahead of NY time. Yet investors and traders glue their eyes on the S&P, Dow as if they are afraid to make a decision without knowing what is going on in the US. I am sure Aussie traders or Germany traders have some input on market correlations.
Secondly, how good are you at analyzing sectors? Are you aware of interest sensitive sectors? Sectors that ppl flock to when banks/securities sectors are flat or down? The stock market is a giant arena full of hopes and dreams for many investors. Why do US stocks have alot of high flyers? Do you really think it is possible that these companies gain millions of dollars in capital overnight? These are the hopes and dream stocks. Watch for these when all other stocks lag. These are what I like to call pure speculation stocks.
Let's take a look at yesterdays action (July 10, 2007). A trader well informed of fundamental news especially with the subprime mortgage panic... would of known that any long setups would of been extremely risky. How many intraday traders actually went long? Did you profit from them? The easy money was on the short side.
For intraday index traders, it is extremely important to be well informed of fundamental news behind various sectors, stocks, commodities, currency, etc.. All of these have an impact on index futures. Stocks like Microsoft, Intel, Apple, etc... have a tremendous impact in the minds of traders globally. A rise in Intel can cause global tech sectors to lift. Where tech stocks are weighted heavily in the minds of traders in markets like Tokyo and Singapore... this news can lift the indexes. Hence you want to be focusing on long setups.
Please feel free to add your inputs. I am no fundamental expert by any means but hopefully this thread can help traders gain a macro of view of trading because intraday trading can easily get one absorbed too much in tick by tick action. Happy trading. ;)