I feel like fundamental analysis is completely useless

Tradex said:
Yes, but some financial instruments - like currencies or interest rates - trend for years and years, and fundamentalists try to predict these slow movements on the higher time frames (with dubious success probably).
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I'm still trying to predict the "macrotrend" for the GBP after Brexit...
 
RGLD said:
I just trade. I don't use time frames, I have positions that I've been on since last year. I just find it a waste of time when I look at a good company and I see it already trending. I could have just found a trending company than see why it's trending.

Just recently I've been looking at LULU. Great company, explosive growth and lots of potential. Oh what's that? It's already up like 40% this year? Is it over valued? Why I do all that research?

The worst thing is if you look at a good company but it's trending down. You buy it thinking based on your research it's a good entry. Than when it goes lower, you buy more... That never ends well.

And the opposite might be true, you find a trending company, you see bad fundamentals so you short it.......
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Okay, so although this would have been the third time Ive tried to get you to clarify and you still havent...

From what you told me "I just trade, & Ive held for a year". You are what is referred to as a "position trader". (Also, it may be good for you to define what kind of trader you are before you start to develop tools of your trade, for me this was important)

Unfortunately, for position trading it isnt "completely useless", wish I could tell you, you dont gotta do your homework homie :O)

I see your argument however and you will have to do the math and see if it is worth your time or not. But no it is not utterly useless. I don't even swing trade, I'm daytrades only, but when I ever do decide on holding over even a short period of time I check the fundamentals.

Yes there will be times where supply/demand make absolutely no sense based on anything. The current market we are experiencing now is also very hyped. For example, many financial guys valued TSLA at 300 and as of today its trading at I believe 1500. Unfortunately, the hype doesnt always last and when buyers and sellers are more rational youre likely not going to get such exaggerated prices (both highs & lows).

For a position trader, I would suggest you continue to do your research and be aware of what you are buying. There could still always be unforeseen scandals, etc. But no as a position trader fundamentals are a vital component, yes after you are aware of the fundamentals you can place your bets based on what the market is demanding. But always caveat emptor
 
Stockboy said:
Okay, so although this would have been the third time Ive tried to get you to clarify and you still havent...

From what you told me "I just trade, & Ive held for a year". You are what is referred to as a "position trader". (Also, it may be good for you to define what kind of trader you are before you start to develop tools of your trade, for me this was important)

Unfortunately, for position trading it isnt "completely useless", wish I could tell you, you dont gotta do your homework homie :O)

I see your argument however and you will have to do the math and see if it is worth your time or not. But no it is not utterly useless. I don't even swing trade, I'm daytrades only, but when I ever do decide on holding over even a short period of time I check the fundamentals.

Yes there will be times where supply/demand make absolutely no sense based on anything. The current market we are experiencing now is also very hyped. For example, many financial guys valued TSLA at 300 and as of today its trading at I believe 1500. Unfortunately, the hype doesnt always last and when buyers and sellers are more rational youre likely not going to get such exaggerated prices (both highs & lows).

For a position trader, I would suggest you continue to do your research and be aware of what you are buying. There could still always be unforeseen scandals, etc. But no as a position trader fundamentals are a vital component, yes after you are aware of the fundamentals you can place your bets based on what the market is demanding. But always caveat emptor
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So how would you justify being right on all the fundamentals but the stock goes down after beating everything on an earnings announcement? Is there any point in doing my homework if you are punished for being right?
 
Stockboy said:
But no as a position trader fundamentals are a vital component,
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Decades after decades studies have shown that market predictions from well-known fundamentalists and other financial "specialists" were wrong most of the time.

In other words they cannot even predict the direction of the market half of the time, despite all their "research"!

I will try to find the article, I believe it was published in Stocks and Commodities Magazine (a long time ago).
 
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RGLD said:
So how would you justify being right on all the fundamentals but the stock goes down after beating everything on an earnings announcement? Is there any point in doing my homework if you are punished for being right?
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If you could read fundamentals to place bets on an earnings play what edge would there be exactly? Wouldn't everyone know where the price is headed and how the market is going to price it? Earnings plays are one of the toughest bets in trading but I know a guy who trades them. But this was literally possibly the worst example you could have used :0)

if you want to trade earnings however it may be the most important trade to understand the fundamentals, it's not enough alone but absolutely necessary unless you want to just guess randomly as to where the value is. Hint just because a stock beat expectations, books look good, don't mean it's got VALUE. By not knowing the fundamentals you're basically just guessing guessing tho.

as a position trader you have to do your homework to know where this company may be headed and use what the market is telling you to place your bet.

Again as a position trader it is far from useless.

But if you don't wanna do your homework don't.
 
Oh yeah,day trading isn't time consuming..

36 percent + per using simple price action/moving averages??

Things that make you go Hmmmm.















Tradex said:
While you fundamentalists wait years or decades to earn 12% a year (if you are lucky) with your extremely time-consuming and complicated fundamental approach , we technical analysis day trade or swing trade the market and earn triple that return (at least), using only price action and/or ridiculously simple trend-following indicators, like moving averages.
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Did you actually say Warren Buffet is the only investor who mastered and profited from fundamental analysis??

I see you are well versed on this subject..



Tradex said:
The only investor who truly mastered and profited from fundamentals is Warren Buffet, all the other investors are just kidding themselves and wasting their time, or they just pretend to make a living with fundamentals (yeah right).
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