Here are the reasons fundamental analysis is useless to day traders. Whether you day trade forex, stocks or futures, don’t get distracted by fundamental analysis. While fundamentals are relevant to long-term investors, day traders will likely find that fundamental analysis analisis teknis forex not improve their performance on short-term trades.
A company can have horrible financial statements, and yet for months on end it can rally. A company can be strong financially, with great earnings, and yet some days the share price will drop like a rock. The point is, fundamentals don’t matter on short-term trades. Anything can happen within the very short time duration of a day trade because price is always moving, both up and down.
As day traders we don’t need to know anything about the financials of the company we are trading. Such data will only serve to distract us. If you do know about the financial position of a company, don’t let it bias your trades. As indicated, anything can happen during one day, and especially during one trade. The price chart tells us exactly what an asset is doing at any given time. By analyzing the price chart we can find trade setups based on our trading plan. If a trading plan or strategy has been proven profitable, then there is no need for fundamentals.
That’s what matters to a day trader. Various economic indicators are released every few days, and company financials are released each quarter. Instead of reading financial statements and economic reports, day traders practice their chart reading skills, finding trade setups and implementing their trading plan. Yet this isn’t always the case. Many day traders have gone broke attempting this. We do need to know when earnings or economic reports are released though. While the actual numbers related to these releases don’t matter to most day traders, these news events can cause big swings in price as both short and long-term traders react to the news.
Bloomberg economic calendar provides a schedule of news releases and important events that could affect the market. The same concept applies to forex trading. Step aside for high impact news releases. Since the forex market is global, be aware of all high impact news events that may impact the currency pairs you are trading.