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Re: Trading Balance: The Best of Both Worlds
Thank you very much for your comments. I would have to disagree regarding this as I personally know of many traders that trade strictly off news, sectors analysis, etc.. which are all fundamental based. What I realized throughout the course of my career is that trading is not limited to but just one style. I used to be 100% technically oriented. I cared less about news as I truly believed everything can be seen in volume and price action. However, after spending time with fundamental based short term traders it was mind blowing. Now, they are mainly stock traders that have deep pockets and are able to diversify their positions throughout various sectors. But one thing is in common. They are able to understand the rotation of money, relative sector strenght extremely well. Hearing them talk is like reading next weeks newspaper. Simply amazing.
I am by no means criticizing 100% technical traders. But I have to state that understanding how top Tier stocks are behaving, the flow of money, etc... can really help give short term trader an edge. I think it is important to understand what the big money is. Of course this can be seen in volume. But these hedge fund type guys are holding such a big position that they need to constantly re-adjust their portfolio several times a day. And alot of their decisions is based on fundamentals.
Using 100% fundamentals is a sure way for me to lose intraday. This I admit because I am no expert. But having a balance in my opinion is an advantage for any trader. Please feel free to disagree.. or agree :p
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