As some of you may know I occasionally write in Traders magazine.The latest issue which I received yesterday was, or so I thought, supposed to include an article I wrote for them 3 months ago (this is their time lag not mine) but the editors decided to leave it out.
In the article I explain how one uses fundamental analysis, as well as technical analysis and sentiment inorder to execute trades. I think the piece adequately shows how this can be done and how one can learn from legendary investors such as Warren Buffett in order to execute profitable trades.
Apparently the article was not enetered as fundamental analysis plays no part in short term trading. I gather that trying to ascertain fair value estimates are irrelevant and I would therefore like to apologise to all my members, as well as to all the investment banks for whom I worked and to the investors in my hedge fund. I obviously know nothing and all the money I have made has been done out of the mistaken view that value, sentiment and market positioning are important factors for all types of traders to guage, whether one is a market maker or a long term investor.
I have been informed that technical analysis is the key to short term trading so will all you guys on the spot FX desk at Deutsche and UBS who receive this please take note. I know the closest you get to charts is when you go to the clinic for your medical but according to a certain weighty tome you don't know what you are doing. Forget spread, edge and following the hot money flow and bring up a chart.
I now apologise to the chief dealers at the banks mentioned who now have about 25 market makers asking them: " Oi mate, what's this charting stuff all about?"
Anyway I enclose the article so you can see the error of my ways.
Harry
Comments