[5-Part Series] The “Underground Fundamentals” that Change a Market Where Technical Analysis Doesn’t Work

Hello, I am Neko Gai from Trade Idea Lab.

In the previous email, I mentioned why recent market conditions have been particularly challenging. Fundamentals factors are strong, and it has become difficult to win with only technical analysis or indicators.

“So, how should we trade in a market where fundamentals factors are strong?”

In this email, I will share hints to the answer.

Understanding the market’s “background” is the first step to continued winning

In markets with strong fundamental factors, it is important to first understand the “background.” We refer to this background as the “hidden fundamentals.” In other words, it means grasping how events such as presidential elections, central bank policy announcements, and important economic indicators influence the market, and understanding their “backside.”

For example, events like presidential elections can cause the market direction to shift significantly depending on the election result. Also, statements by central banks and interest rate policies directly affect the value of currencies. By knowing these “hidden fundamentals,” you can respond to market moves that normal technical analysis alone cannot read.

If you continue trading without understanding these “hidden fundamentals,” you may unknowingly take disadvantageous positions, leading to unexpected losses. However, by understanding and utilizing fundamentals, you can seize opportunities that are often missed in regular trading.

In the next email, we will discuss in more detail which information you should pay attention to among such fundamentals information. What we call “favorable information” is one of them. This information is freely available to anyone at any time, and there are procedures to confirm its measurability, the strength and direction of its impact, and the persistence of its influence. By knowing this, you can efficiently utilize fundamentals and steadily accumulate profits even in difficult markets.

Please don't miss the next email as well!