Daytrading vs. fundamental analysis

[dbphoenix]

Quote from inandlong:

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."

This is what I liked about a CANSLIM approach; even if one applied only the most basic filters, the number of tradeable stocks dropped from thousands to only a few hundred. And it wasn't all that difficult to reduce that to a few dozen. And guess where the volume turned out to be?

But once the universe is defined, continuing to make the fundamentals a factor can kill you (it's a good stock; it'll come back). At that point, TA rules.

 

[Don Bright]

Quote from inandlong:


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"!

I don't think that the book will have that exact title (but you never know...lol)....and if we used fundamentals for daytrading (especially 1997-2000 or so), we would have all gone broke. However, as a Relative Strength measure (when pair trading, or using sector strength), it is always good to have the "numbers" already in your head.

Remember, this is an easy game to keep score in.....$$ and cents (and sometimes a little "sense" goes a long way).

Don

 

[ElCubano]

Quote from dbphoenix:




But once the universe is defined, continuing to make the fundamentals a factor can kill you (it's a good stock; it'll come back). At that point, TA rules.

PRICE rules over NEWS which rules over TA which rules over FA.......

you can have a great looking chart in an amazing trend and have some shmeckle head on cnbc mess it all up.....peace

 

[inandlong]

Quote from Don Bright:



I don't think that the book will have that exact title (but you never know...lol)....and if we used fundamentals for daytrading (especially 1997-2000 or so), we would have all gone broke. However, as a Relative Strength measure (when pair trading, or using sector strength), it is always good to have the "numbers" already in your head.

Remember, this is an easy game to keep score in.....$$ and cents (and sometimes a little "sense" goes a long way).

Don

LOL! Amen Don.

 

[inandlong]

Quote from ElCubano:

PRICE rules over NEWS which rules over TA which rules over FA.......

In the very short time frames I agree with this. But in the longer time frames, weeks and months, I would reverse FA and News.

However, in the immediate time frame, meaning this moment... price IS news AND fa AND ta.

 

[jack hershey]

Quote from ElCubano:

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

you can use FA to get a smaller universe. Making money is not a macro oriented endeavor; it is a micro thing.

this is why money managers never beat the true value of the economy. thet are macro jocks. MM is using macro but he has no money like money managers do. This is the onlt reason he quals them, he has no macro constaint. Too bad he doesn't
use his universe to optimizing his money velocity like traders do.

It will be hard to get him to think about anything. I used to condition myself for glider acrobatics using a combo of exercise and quick thinking exercises. MM is not a reasoning person yet since he hasn't dealt with any significant capital as yet. doing glider acrobatics after market close is a great way to be in a more menatlly relaxed context where you are detecting with pressures on your bod and then reecting to complete very dynamic moves.

I would love to see him responding during over 5G moves that have to be made. LOL.

he has trouble mentally stayin in ET and not flipping out periodically.

 

[jack hershey]

Quote from inandlong:


It seems to me that the inclusion of fundamental analysis in the thread title implies a longer time frame than daytrading. I would venture that less than .1% of daytraders use FA. As such, there really wouldn't be much discussion posited by the daytrading FA crowd.

the day tradrs here are not trading excellent micro universes. you will notice that alot of them on the other hand just trade a group of stuff that has such high volume that is does not move significantly.

think about it. when a person is doing volume, he should be in a place where the market still moves in price.

Most of the big posters here in scalping etc do not trade movers and they just miss out on getting any significant money velocity eveer.

 

[jack hershey]

Quote from ElCubano:



PRICE rules over NEWS which rules over TA which rules over FA.......

you can have a great looking chart in an amazing trend and have some shmeckle head on cnbc mess it all up.....peace

why not just learn to be on the right side of the moves???? somedaay you will notice that someone is one the opposite side of where you are stuck.

 

[mrmarket]

Quote from jack hershey:

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.

Maybe you'll find this email I received today from Investors Business Daily of interest:


From: forumsupport@investors.com
To: mr_market63@yahoo.com
Subject: RE: I have 25 consecutive profitable trades of 15% or better...I am the greatest stockpicker on the planet
Date: Wed, 2 Jul 2003 10:50:10 -0700

Excellent results to go along with the bravado. If these type of results continue, provided you're investing an appreciable amount per stock, you'll be financially independent in the not too distant future. Be careful as you enjoy the best meats and cheeses.

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You are receiving this message from IBD Forums because you have flagged this forum, topic or user.

 

[jack hershey]

Quote from dbphoenix:

Hershey, give it a rest. This has actually turned into a fairly decent thread. If you want to fight with somebody, put on your bubba 7 suit and hit Chit Chat.

LOL. i read your posts too. thanks for your contributions. what is getting your attention besides me now?

thanks in advance