Daytrading vs. fundamental analysis

Quote from mrmarket:




... .
It is a known fact that the money managers who went to the top business schools outperformed those that went to lesser schools when they did empirical and normalized return analysis of their respective funds. ... .
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Seriously, has anyone ever done a study like that?
 
Quote from mrmarket:


So I summarize by saying===> average returns are for average investors, superior returns are for superior investors.
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How on earth does day trading have anything whatsoever to do with investing?
 
Quote from AAAintheBeltway:



There is a certain amount of truth to what you say. I've always thought that fundamental analysis requires great intellectual arrogance. As you say, it's an exercise in saying you are smarter than the market. The historical returns of actively managed funds, with all the high-priced analysis talent at their disposal, suggest that this arrogance is usually misplaced.

As I understand your selection criteria however, I wouldn't say you invest using fundamental analysis, at least not as your primary tool. You run several quant screens, then I suppose make a final due diligence type review that has fundamental elements. You are trying to ride the last momentum gasp of great winning stocks. I like that approach, but it's not really what Warren Buffett does, is it?
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About 2 months ago, Jack Bogel of Vanguard said that over the past one year period, the index funds had outperformed better than 80% of the funds that were actively managed.

Face it, there are top performers in every endeavor. Many very well educated and sophisticated fund managers lost tons of money over the past 3 years.

Mrmarket wants to project superiority with his system, yet the most of the real winners don't have a need to do so.

Results almost always speak for themselves. When they don't you will find someone pumping themselves and their system as "the best."
 
Quote from mrmarket:

In my opinion, daytrading is merely the recognition of patterns. A rat eventually learns to run the correct way in a maze.

Fundamental analysis is requires brainpower, for it is required by the analyst to examine the data and apply it to his own view of what is a successful business model. Making a proper call on the proper fundamentals means that the analyst actually knows more than the market. It's a great place to be.

So I summarize by saying===> average returns are for average investors, superior returns are for superior investors.

Your comments are welcome.
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Let's see:
1) I'd rather be a rat that has figured out the maze and milks it day in and day out, than the herd of rams that rushes to work every morming and then back home in the afternoon.
2) If financial analysts knew anything they would not be working, but be rich and retired. If a business model does not make money, you may as well use it to wipe you know what.

Bottom line stock market is the place where to make money, Academia is where to analyze yourself into oblivion.
 
Quote from estrader:



Let's see:
1) I'd rather be a rat that has figured out the maze and milks it day in and day out, than the herd of rams that rushes to work every morming and then back home in the afternoon.
2) If financial analysts knew anything they would not be working, but be rich and retired. If a business model does not make money, you may as well use it to wipe you know what.

Bottom line stock market is the place where to make money, Academia is where to analyze yourself into oblivion.
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there is difference between trawling for fish in a net and being on a stream fly fishing. You both catch fish, true but I prefer the latter method.
 
Then System Trading (not limited to technical but also fundamental systems) uses the most brain power developing one...
 
Quote from mrmarket:




It is a known fact that the money managers who went to the top business schools outperformed those that went to lesser schools when they did empirical and normalized return analysis of their respective funds. Not to be outdone, $$$MR. MARKET$$$ has outperformed all of these bozo's in the last 12 years, using my system.
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We know you don't have time to answer financial Q's because of of time constraints caused by your job. your wife and your 3 kids.

You went to work for a chemical company and you do a sararied thing there daily week after week year after year. money managers do otherwise as they share fruits of participation and a host of other perks. trophy wives is their alternative as well and it is glitz oriented. Do your kids go to public schools as a preference that you have for continuing your family's traditions? most money managers send their kids to private schools.

I was wondering if the capital in your more successful approach is greater than the money managers get paid torun.

I compared what the wizzards to as they roll along to your published results. you are not by any standard that I know of building muchy real wealth when you net it back to buying power and that kind of stuff.

A combine fundamentals (more sophisticated than yours) with TA and I also use maths too. You have a lot to do to produce any kewl results as I see it. don't use me as a standard; Im not in your league.
 
Quote from WDGann:

Then System Trading (not limited to technical but also fundamental systems) uses the most brain power developing one...
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I would not argue that...it does involve creative and algorithmic thinking rather than mimicing and replicative thought.
 
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