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Forex » Sergeant - Fundie vs Techie
 
 

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The Fundie vs. The Techie

In the battlefields of Forex you will primarily find two types of fighters: Technical Traders and Fundamental Traders.

If you’re a fundamental trader you’ll rely on world events and news report as your primary information to decide whether or not to open a trade.  Generally a fundamental trader holds a position in the market for a reasonable length of time. However, there when large news events take place, a fundamental trader can make quick profits in a short period of time.

A technical trader will rely on charts to determine whether or not to enter a trade. Instead of watching news events, a technical trader will rely on patterns and probabilities in price movement to make decisions. Technical traders can trade on any timeframe and can be scalpers, short-term traders or long-term traders.

While the strategies behind the differences of technical traders widely vary. Very few are absolute to their side of the fence. While a fundamental trader might not care much for sitting in front of charts to see how recent price has moved, it would be unwise for him to disregard strong psychology trading levels that might be created by technical analysis.

The same is true for the technical trader. It matters very little if all technical indicators assume one position, when the news is telling an opposite story. A large majority of technical traders will not make trading decisions around times when there is a strong economic news report awaiting to be announced.

Whether you are a fundamental or technical trader, when you got your gear on and you’re ready for battle, be sure the weather on the field is favorable before you decide to charge the enemy’s front lines.

While the FX Trading Network does cater to fundamental traders, the majority of all teachings on this site will primarily reflect technical analysis.

More Lessons

1. Recruit - What is Forex?
2. Private - How does Forex Work?
3. Private First Class - Selecting a Broker
4. Corporal - Pick a Chart, Any Chart
5. Sergeant - The Fundie vs The Techie
6. Lieutenant - Strategize
7. Captain - Indicators
8. Major - Playing with Price Action
9. Colonel - Developing your Plan
10. General - Putting it all Together