Syncing with market sentiment

8 years trading currency, I just discover how important to keep intact with global news economy. Everybody said price is really matter. No need to analyze news and fundamental analysis. Everything already reflected at price. Boy I have never been so wrong.

I am not saying technical is not important. In fact it is now more needed than ever. Sentiment drive market, technical is telling us when it is time to reverse.

Trading can be illustrated with driving. Technical trading is like driving with map. It give you direction from point A to B. While news is like you keep hearing the radio and using road sign.

With map only you never know what happened at road ahead. There maybe broken bridge, accident, falling tree, close road, etc. With radio and road sign only you may not know the fastest route to destination, where is your position now, and if getting lost, it is hard to return to the right track.

Combined with this two you will have the best navigation system. If there is accident ahead you can take alternative road and reach destination faster than taking usual road.

Problem with using only technical analysis is when it is profitable and everybody using the same technique, market maker and big money will easily stop hunting our position. With fundamental trading, other big institutional will support the position as they usually dont care about retail traders.

Technical alone is not bad. There are sucessful traders out there using technical only. But for me it is very frustrating not knowing why certain price jump with no reason at all.

Driving is no way as difficult as trading. There is no money risk involved. But if we can keep syncing with market even if we lose money, we know why. Not just price.