The idea of a balanced trader is that they understand that fundamental news will drive the market and set an underlying sentiment, but that technical’s with generally dictate the levels where the market will eventually move to. There are many theories that people can purely trade on fundamental data or technical’s alone, this is the case but in our experience I would always trade with a balance of at least 80% technical analysis with 20% fundamental views.
The benefit of trading with fundamental data is that is on set days at set times. This can not only set structure to your trading session, day, week or month by allowing you know when to trade but also allow you to profit from market moves. Click here for the latest economic calendar.
Once you understand what fundamental data is and what effect it will have on your market you can then chart and prepare for this technically. By plotting your charts and determining points of support and resistance you can determine how far a market may extend and also identify by the use of oscillators good entry and exit points for your trades.
The balanced trader should be aware of all the factors that other people involved in the markets will base their trading decisions on. These include things like candle stick formations, chart patterns and leading and lagging indicators that will change the sentiment of the markets. For webinars covering all these we recommend you watch the free educational webinars on www.intertrader.com by simply opening an account and selecting the ‘webinar’ tab on the intertader.com homepage.