Cutting losses is for losers
- Thread starter mrmarket
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mrmarket, you may very well be a good guy, but you are a trading NEWB!!!!
FRuiTY
Mr. Market,
I have some questions...
1) While I believe there is "some" validity in fundamental analysis, there is a major difference between a company and its stock. I see them as two completely different entities. When the technicals outperform of the underlying stock of a company that has horrid or declining fundamentals, what do you do? Wait for some equilibrium? Do nothing? Take a shot?
2) As we have learned, accountants can do some great magic tricks with the numbers. A game of three card monty with a $5 Billion loss can make it a profit, and it paints a much better fundamental picture of a stock. The GAAP still allows for alot of flexibility: pro forma, misc line items, etc. Watching top company officials take the 5th amendment 138 times on C-SPAN was a disgrace. I remember watching the testimonies and getting very angry, as I knew there were hundreds of thousands of investors who were fleeced. Now that we learned we cannot trust the numbers, despite signatures of the CEOs, where does that leave fundamentals? I respect anyone on this board that provides information to help the fellow members. There is a great deal of time involved, and like you, I also have a child, and I sometimes I sacrifice time with him to engage in intelligent exchange with some of the members here.
I have not paid any mind to fundamentals for the last 9 years. Yet, I have managed to make a very good living trading. Neither I nor, anyone who I have have taught or mentored has been clipped in WCOM and ENE type scandals. Simply because the focus was on technical and momentum analysis. I firmly believe that despite all of the reform, the fundamentals are still questionable. The analysis all points back to those numbers. I am neither questioning nor backing your performance, I am simply interested in your comments above.
I'm very serious here, not looking to get into a squabble. Thanks.
I have some questions...
1) While I believe there is "some" validity in fundamental analysis, there is a major difference between a company and its stock. I see them as two completely different entities. When the technicals outperform of the underlying stock of a company that has horrid or declining fundamentals, what do you do? Wait for some equilibrium? Do nothing? Take a shot?
2) As we have learned, accountants can do some great magic tricks with the numbers. A game of three card monty with a $5 Billion loss can make it a profit, and it paints a much better fundamental picture of a stock. The GAAP still allows for alot of flexibility: pro forma, misc line items, etc. Watching top company officials take the 5th amendment 138 times on C-SPAN was a disgrace. I remember watching the testimonies and getting very angry, as I knew there were hundreds of thousands of investors who were fleeced. Now that we learned we cannot trust the numbers, despite signatures of the CEOs, where does that leave fundamentals? I respect anyone on this board that provides information to help the fellow members. There is a great deal of time involved, and like you, I also have a child, and I sometimes I sacrifice time with him to engage in intelligent exchange with some of the members here.
I have not paid any mind to fundamentals for the last 9 years. Yet, I have managed to make a very good living trading. Neither I nor, anyone who I have have taught or mentored has been clipped in WCOM and ENE type scandals. Simply because the focus was on technical and momentum analysis. I firmly believe that despite all of the reform, the fundamentals are still questionable. The analysis all points back to those numbers. I am neither questioning nor backing your performance, I am simply interested in your comments above.
I'm very serious here, not looking to get into a squabble. Thanks.
You mean besides your life as a Yahoo guru, in which you brag about yourself on a free ET message board, you double as "an active participant with real funds". So you are managing these funds and purchasing stocks such as COH? Woooow! Because the only way to buy these stocks by "actively participating in real funds" is by being the managing trader. If you're just an investor, you wouldn't get your say in which stocks you purchase.
Got ya! You complete idiot. Done in by your own ignorance.
MrMarket,
Are you still in COH? It had a 6% move today. Unreal. SSYS is up over 10% in two days.
Are you still in COH? It had a 6% move today. Unreal. SSYS is up over 10% in two days.
1. I don't buy stock in a company that has horrid underlying fundamentals.
2. I think accounting games are the exception rather than the rule. Having said that, I still don't buy stock in a company unless I thoroughly understand a company's business model and how it relates to its economic environment. If it doesn't make sense to me that a company can grow its earnings, I stay away.
Good questions....thanks.
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