Do I Need to Hire a Fundamental Analyst?

systematictrader

systematictrader

ive been deploying this strategy in stocks since April and its done phenomenally well so far,,, all with real money,,, i dont consider this trading but more so investing since its biased long and is only in stocks,,

the question is do i need to hire a fundamental analyst in the future?? or now cuz i know this strategy wont run forever this smooth as has its results been or when the market starts dropping to be more selective on the stocks

the strategy is simple and systematic in the sense of its application,, that is

find a large cap stock that pays dividend.
find what price does that stock need to be where dividend rate equals 6% or 5% sometimes (annual dividend divided by .06)

buy stock at that price, hold if price drops and collect 6% annual dividend
sell if i get 3 years worth of dividend (18%)

each stock gets a standard size of 10,000 or 5000 if there is 2 or more stocks from the same sector

out of the stocks list that i made which totaled to 700, only about 12 made it,, but observation has shown that have i ran this strategy several years back wards many more stocks would've been entered and exited profitably

stocks that have been entered and exited successfully so far are; spls, lvs, ctl, vlo, m, gps, hpq, gm
 
i couldnt upload an excel sheet so here is a snap shot of the list to show example
 

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@RUFUS MREHIN

Lots of people will try to tell you that you can trade purely on the basis of technical analysis.

That, of course, is complete rubbish.

Completely ignoring fundamentals is sooner or later going to end up biting those people in the backside.

Pure technical people say "the trend is your friend" .... well sure, and the BIGGEST trend of them all is what's going on in the fundamentals.

Take a moment to consider objectively what the limitations of technical analysis are. TA is great, but only if you understand what it is and when it is appropriate to use it.

The markets do not move in a random fashion. If you don't make an effort to understand what is going on at a fundamental level, then you might as well put on a blindfold and stick pins on a copy of a financial newspaper !
 
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If you can read charts, then fundamental info is pretty useless. The big move will have occurred before everyone knows the fundamental reason why. Another issue with fundamentals, in my opinion, is that it clouds your judgment. I've seen fundamental guys hold on to disastrously losing positions when the charts screamed that the trend is opposite their bet. These guys believe that the market just has to come back because of the fundamental info at which they've arrived.
 
learner2007 said:
If you want to buy the company, go with FA.
If you want to but the stock, go with TA.
More...

Yawn. :banghead:

I see this "either or" attitude every single time someone dares mention Fundamentals infront of a bunch of Technical purists !

As I said, its not "either or" .... the most successful people have learned to use a combination of both.

I bet the reason most Technical purists love to bash Fundamentals and dismiss it as useless is because Fundamentals takes more effort than just looking at charts !

People are lazy, they're always looking for the easy option, and the "pure technical" approach attracts those people.
 
Tim Smith said:
@RUFUS MREHIN

Lots of people will try to tell you that you can trade purely on the basis of technical analysis.

That, of course, is complete rubbish.

Completely ignoring fundamentals is sooner or later going to end up biting those people in the backside.

Pure technical people say "the trend is your friend" .... well sure, and the BIGGEST trend of them all is what's going on in the fundamentals.

Take a moment to consider objectively what the limitations of technical analysis are. TA is great, but only if you understand what it is and when it is appropriate to use it.

The markets do not move in a random fashion. If you don't make an effort to understand what is going on at a fundamental level, then you might as well put on a blindfold and stick pins on a copy of a financial newspaper !
More...

just to confirm few things,,, i once again want to say this is not so much trading in my consideration but more so investing,,, the approach here is systematic but no charts are needed,,,,the key question iam asking here is if a fundamental analyst would add value in the future by analyzing for example fundamental values such as probability of dividend continuing, probability of company surviving, probability of company cutting dividend,,,p/e ratio etc
 
Robert Morse said:
The true test of your strategy will be in the next down market to see how you react to adversity.
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Robert,, i understand that,, thats why iam seeking a more solid frame around it before hand,,,whats ur thoughts ,,,,,as far as my reaction i would expect it to be unchanged since the money is pretax and is not needed and no margin is used,, additionally i trade forex n futures in separate accounts which is where my bread and butter comes from,,,
 
Money Trust said:
If you can read charts, then fundamental info is pretty useless. The big move will have occurred before everyone knows the fundamental reason why. Another issue with fundamentals, in my opinion, is that it clouds your judgment. I've seen fundamental guys hold on to disastrously losing positions when the charts screamed that the trend is opposite their bet. These guys believe that the market just has to come back because of the fundamental info at which they've arrived.
More...

iam a believer in charrts and purely technical at least in forex and futures,,, but please

see post above please,, iam not trying to analyze direction but more so fundamental value,,,
 
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