Welcome to NexusFi: the best trading community on the planet, with over 200,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- discounts are available after registering.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Fundamentals will not help you make money in the markets, because you always know about them too late in the decision making process and you'll always have a hedge fund trader who has the numbers before you.
Macro data is already priced in the market at virtually any time...
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,241 since Dec 2013
Thanks Given: 4,584
Thanks Received: 10,523
While I agree that sophisticated traders have better access to fundamental data and analytics, which obviously gives them and advantage, I wouldn't agree that means you can't make money having a fundamental bias and that you should ignore fundamentals.
Studying fundamentals and especially news flow can be extremely helpful in identifying sentiment bias, which, to a swing trader is invaluable information. When the news stories and embedded quotes from market professionals all skew bullish, you can assume that most positions probably also lean bullish and are therefore looking for an exit. This is fodder to a contrarian swing trader. Good news sources also help identify what a lot of major market participants will be paying attention to, or anticipating, in coming trading sessions, which may also help the astute observer uncover exploitable vulnerabilities in the "herd's" group-think behavior. Again, invaluable information to the longer time-frame trader.
Those who ignore fundamentals because they believe it's already priced in do so at their own peril. Willful ignorance is generally not something I would recommend.
Thanks for the link, @myrrdin. Allow me to reciprocate. Another excellent fundamental news source for the trading of soft commodities is the website: agrimoney.com, which is continually updated with timely and relevant articles. I highly recommend it for anyone who trades the softs - even those who feel everything is already priced in.
I think saying macro data is already priced in ignores the simple fact that a producer or speculator still has to make that macro decision before it's actually priced in. The democratization of data is allowing 'cheaper' analysis for those that want it from weather satellite data to shipping volume data.
Can you get to your final location without a GPS? Sure. You can read the signs right in front of you. But it sure helps to know what the road map is going to be (shifts in fundamentals) before it happens in price.
