I am considering becoming a day-trader using spread betting as my vehicle.
I want to know what out of fundamental or technical analysis is of most benefit for day-trading the financial markets if you want to consistently make money as I know from my practice experience that trend trading the minutes, hours and the days range, whatever the direction is good to follow to take in lots of little profits.
Which out of technical or fundamental analysis is best to use for the purpose of day-trading – which is most efficient in consistently making money?
Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, even if you learn everything about day trading the market is just too random and unless risk is controlled, over time your account will slowly get wiped out, regardless how good a “trader” you think you are.
This question was about day trading and there have been some pretty good answers that should help in your trading, and especially in relation to day trading, the answer has been posted in the categories listed below:
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Momentum is all that counts in day trading. Find the hot stock for the day. Look for stock that has been increasing in volume each day. Technically, make sure any moving average is on the upswing. My favorite was money flow. Is money still flowing into the stock? Fundamentals don’t matter in day trading. If you trade right you are holding no stocks when the market opens and you are holding no stocks when the market closes. That’s the definition of day trading.
if you are day trading technical analysis is far more important – however you cannot neglect fundamentals – say the company is in to announce a trading update this week; can you really disregard that?? Likewise you cannot disregard inflation or unemployment numbers as these can have a big effect on the financial markets. Having said that I believe a lot in technical analysis, not necessarily because I believe it works but because so many traders follow it that it becomes a bit self-actualizing…