Sometimes I will write about things that you will not need in trading, but not everyone understands this.
I'll start with a fundamental analysis.
Recently, I got tired of listening to nonsense about the fact that I do not take into account the fundamental when opening deals. If you are going to once again brainwash me about the usefulness of the fundamental for a trader (not an investor!), read carefully what I will write below:
At the end of the 19th century, a journalist formulated the hypothesis that asset prices take into account everything, namely: sentiment, past, current and future events, reports, earthquakes, and the like. This journalist was a certain Charles Dow, after whom the American industrial index is now named. The Dow theory is based on all technical analysis, and it is with the help of technical analysis (technical analysis is any method in which you use a price chart, whether it is classic TA, ICA, cluster, etc.) that you understand the main things for entering a position: the entry point, stop, and goal. Fundamental analysis will not give you a setup where the stop, entry and take are clearly understood. You can invest long-term using the concepts of value investing, but you will no longer be a trader, but an investor. You, as a trader, need to understand the mechanics of the market locally and you do not need to try to look at the prospects of the market in 10 years. Therefore, you should not fill your head with useless information at this point in time. Your setup consists of such things as trading on the expansion of ranges, on the reaction of the price to liquidity, and nothing more. Dow has simplified the task so that you do not spend time comparing all the factors, trying to understand what news and how it will affect the price. Will trading be effective if the impact of events on the market is not always clear? The market does not always rise on good news, but falls on bad news. And what difference does it make what caused the price to rise, if you have already seen a narrowing of volatility before, and then entered the market on the expansion of the range? Moreover, at the time of the news release, you can already see that the price is flying without you. When you ask what news provoked such an increase, someone simply took and traded the setup that was in front of him at that time, without thinking about why the price would rise or fall. Yet you wonder why growing some shit third tier, spit on the concept of Benjamin Graham, who do not qualify the object of the transaction (what company, what is reporting strong team, technologies and protocols), but it makes a successful transaction.
I don't know about you, but I'm used to simplifying my task without scattering my attention to the huge information flow around me. Your task is to concentrate on the facts that are here and now before your eyes. The price (its graph) is the primary information that can be processed most quickly.