this is what i can't undrstand about MM,; he doesn't catch on to money velocity at all .
big puzzle as to why he limits himself to making money.
Evederyone uses FA to get a universe then they use it to make money by optimizing money velocity.
Daytrading vs. fundamental analysis
- Thread starter mrmarket
- Start date
this is what i can't undrstand about MM,; he doesn't catch on to money velocity at all .
big puzzle as to why he limits himself to making money.
Evederyone uses FA to get a universe then they use it to make money by optimizing money velocity.
Trying to look past the silliness shown in some of the posts, I will try to respond to the orignal premise.....FA and daytrading.
We not only subscribe to, but encourage, all of our traders to be totally cognizant of the fundementals for the stocks they trade. Whether you're pair trading, using relative strength, or simply scalping....it is imperative that you know the fundementals.
Trading is much more than playing a video game (I am not saying that many of you think that, just some of you.....lol). We need to take this profession seriously...and treat the stocks we trade as "children".....children whom we love and cherish (and insist on knowing everything about them....whether they like it or not!).
I know all the basics about every stock I trade....and, yes, I understand that even the "financial records" can and have been "cooked" at times....but, nonetheless, we must know book values, P/E's and all the rest.
Don
We not only subscribe to, but encourage, all of our traders to be totally cognizant of the fundementals for the stocks they trade. Whether you're pair trading, using relative strength, or simply scalping....it is imperative that you know the fundementals.
Trading is much more than playing a video game (I am not saying that many of you think that, just some of you.....lol). We need to take this profession seriously...and treat the stocks we trade as "children".....children whom we love and cherish (and insist on knowing everything about them....whether they like it or not!).
I know all the basics about every stock I trade....and, yes, I understand that even the "financial records" can and have been "cooked" at times....but, nonetheless, we must know book values, P/E's and all the rest.
Don
Why would anyone at all assume that traders do not do very heavy prep using FA.
We use a lot more in our depth than MM uses, speaking for myself.
MM has a much lower money velocity than any trader I know personally.
Knowing the fundamentals is one thing, basing your intraday entry and exit decisions on them is another.
I doubt you teach your traders to jump in when the P/e gets to 18.1 and get out when it is 18.5. I am sure you don't send a quick note to your guys and say, "Hey, GE just bought another imaging company, let's ride this baby for a quick 20 cents."
Maybe there is room for you to write a book Don, "Daytrading with Fundamentals"!
How many stocks is MM holding?
What is his average tim of hold now?
what is the trend of holding time over the last three years?
I think his money velocity is in decline.
What are the facts.
HE works
Has a 10 yr old car
three kids going to go to private schools if he treats them as he was treated.
maybe wife will have needs to socialize on a normal level soon.
will he get a home so kids can have their own rooms.
What is his average tim of hold now?
what is the trend of holding time over the last three years?
I think his money velocity is in decline.
What are the facts.
HE works
Has a 10 yr old car
three kids going to go to private schools if he treats them as he was treated.
maybe wife will have needs to socialize on a normal level soon.
will he get a home so kids can have their own rooms.
Has MM mentioned on how much he pulls a month to supplement salary?
how much monthly growth does he leave in at this point?
Any body know this stuff.
we can make a model of his stuff and see what he means.
Looks like he thinks the S&P is some kind of rference. But for what?
If you pace the indexes you are standing still in buying power and relative wealth creation.
He usually comes on here to satisfy personal needs and we can take him out of here with one single post. history will repeat but it would be nice to find out why he is stuck where he is and what it will take to get him to begin to reason about any thing at all.
how much monthly growth does he leave in at this point?
Any body know this stuff.
we can make a model of his stuff and see what he means.
Looks like he thinks the S&P is some kind of rference. But for what?
If you pace the indexes you are standing still in buying power and relative wealth creation.
He usually comes on here to satisfy personal needs and we can take him out of here with one single post. history will repeat but it would be nice to find out why he is stuck where he is and what it will take to get him to begin to reason about any thing at all.
I dont know how FA can be used for intraday trading.......it doesnt matter that the company may or may not earn x $$$ or its p/e is right on the money.....hell it doesnt mater if the CEO of the company is a crook and cooking the books by sticking inventory in some warehouse out in Texas and booking it as a sale (sunbeam) if the price is going up and ur long who cares.......peace
