What do you find is the best method for investing in currencies? Purely technical, purely fundamental, or a combination of both? I'm still new to the forex market and was thinking about running on technicals alone.
I've been trading for about six years and I have flip flopped between the two. Now I have come to realize that you can't separate the two. My technical analysis has improved since I started developing my own indicators. I rely heavily on the data those indicators are giving me but I am also keenly aware of market fundamentals. An unexpected turn of events in the marketplace can completely invalidate technical analysis.
I start my trading day the previous evening by previewing the economic reports for the following day. If I think a surprise might be in the works, then I wait for the report to be published before opening any new positions that might be affected by it. For example, I never trade the day of non-farm payroll - too unpredictable.
Again, for the most part, I rely on my technical analysis to give me an indication of where the opportunities might be but I always view it through the prism of the fundamentals. They go hand-in-hand.