Rom wrote:I am wondering what "fast money" refer to?
Fast money is a reference used to describe aggressive short-range (often intraday) bets from Investment capital & leveraged funds.
Rom wrote:A solid downtrend on GBPJPY but something changed everything, I am not sure what news.
It was a mixture of proposed scaling back of potential quantitative easing capital from the Bank of England + better than expected UK data (confirming a reduced need for more QE capital).
Output such as that will sometimes exert a strong & short-term influence on price as traders re-position & re-adjust their bets in the wake of fresh fundamental data.
You have to appreciate that normal day to day positioning in the markets, & specific currencies, is the reflection of collective traders views & perceptions of the ongoing influences & factors that affect & drive price valuations.
They constantly position themselves to reflect the current valuations based on the regular state of the countries economic health & how that country is biased v/s the other currency pair in the two way relationship.
Each time another item of fundamental data is released, traders price in the forward effect of that collective input in respect to the other pair in the relationship & v/s it's other trading partners.
If the data comes in as expected & in line with consensus, the price action won't be unduly affected.
If the data surprises the market by coming in under or over expectation for whatever reason, you can expect a violent reaction as traders scratch, exit or add to their positions, thus aggressively impacting the near-term volatility of the price action to compensate for the data re-adjustment.
Rom wrote:That GBPJPY move was the nail in the coffin for my daytrading.
Day trading is a very lucrative practice for those with very disciplined & well organized strategies & models.
It's not all based around data or news releases.
There are plenty of lower risk, higher value opportunities available throughout a typical weeks trade without having to put yourself in the firing line & suffer the effects of violent data release outputs.
Like anything else in the business world - the well prepared, well organized & smart operators will benefit at the expense of the naïve, ill-prepared & inexperienced participants.
Rom wrote:Implications of different timeframe is that all daytrading newsletters and all daytrading signals can be directed to wastebox.
The above comments are about the only sensible inclusions in that paragraph you posted.
Whoever put the rest of that information together quite clearly doesn't understand the benefits of a well constructed intraday model, but that doesn't surprise me given the garbage that's consistently spewed out to the masses masquerading as sensible advice.