School Corner
The lesson to me of this is as follows - when there is a divergence in the technical picture relative to the fundamentals, it is invariably better to wait for the technical situation to play out first and align with the fundamentals before making the trade. The more ‘boxes you can tick’ in your trade line up, and when coupled with good money management, the more profitable your trading will be - fact. When it comes to stocks then certainly a thorough understanding of the fundamentals of that company should be undertaken — even if you are day trading. Technicals can then be used to time the entry and plan your exit from the position.
26 | www.financial-spread-betting.com | June 2012