The Fed Cut the interest rate again today. This brings up a lesson in different trading theories.
When you trade, most people use Fundamental Analysis or Technical Analysis or a combination of the two.
Traders that use financial information and press releases to predict the future market prices are Fundamental traders. It has been my experience that Fundamental traders, trade the news. Fundamental traders would have traded this rate cut very aggressively.
Traders that use technical analysis, use chart patterns, indicators, etc, to predict the future market prices.
I am a Technical trader because I believe that Fundamental traders enter the trades too late. When news hits the streets, the market professionals have already acted on the prices which is too late for the smaller investors like you and I.