I feel like fundamental analysis is completely useless

ironchef said:
I won't try to convince you because I know you are a successful day trader and you should stick to what is successful for you. However, there are more than one way to skin a cat.

Fundamental probably won't work for day trading. But for someone who swings, a combination of fundamentals and charts or TA might give that someone an edge.
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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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How did you earn the respect of the Chef!? I'm interested....
 
RGLD said:
How did you earn the respect of the Chef!? I'm interested...
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Well, it just happens that IronChef and I share the same views about the market, more or less.

He is a nice, decent fellow by the way.
 
The metrics I look at are ROE, earnings growth, gross margin, institutional ownership. What fundamental investors are taught to look at. I'm just looking for someone else to buy my shares when I decide to sell.

I'm not aware of any studies, and I'm not overly impressed if you were to show me some. Studies usually start out with a bias and find data to prove that bias.

Show me a rich academic. :)
 
Tradex said:
Yes, Ok, but how do you know that these metrics are indeed profitable, and to what extent?
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I don't know if they are profitable. I just know that is what other people look at because someone taught them that they are profitable.

Just google how to pick a good stock and see what you come up with.
 
RGLD said:
Think about it, if you can find value or predict events before they happen based on balance sheets and economic data, but the market hasn't moved, it means it doesn't agree. Traders know going against the market is a terrible idea. Market is always right. If a bad company you analyzed is trending, than more than likely there is something you missed.

The whole concept is of fundamental analysis is just confirmation basis for technicals. No matter how good a balance sheet is for a company, it's a risk if the market isn't heading that way or the opposite direction. The best course is to just stay clear until the market agrees, which means you wasted countless hours looking at SEC filings for something that may never happen.
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This is a nice attempt to induce guys into divulge their methods, by feigning a false assumption that would likely trigger some emotional urge to respond. A lot of guys on twitter do this.
 
bob666s said:
This is a nice attempt to induce guys into divulge their methods, by feigning a false assumption that would likely trigger some emotional urge to respond. A lot of guys on twitter do this.
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You mean trolling?
Nearly all of us do it on ET, it keeps the discussion going which is the whole purpose of the forum, lively debate. :)
Welcome to ET, you have started well with your first post.
 
bob666s said:
This is a nice attempt to induce guys into divulge their methods
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Yeah right, like if "fundamental analysis" is the best kept secret in the trading community. :D

For me fundamental analysis has been invented by brokers and money managers to give traders the illusion that trading is VERY complicated.

In other words they are saying : "Hey, trading is extremely complex, you need "experts" like us to do the "fundamental" analysis for you, so hand over your money and let us do the heavy-duty homework for you!"

And most people fall for that big fat lie and pay these guys good money for useless advice and mediocre performance that cannot even trail the S&P 500.

Because what these guys are not telling you is that most money managers underperform the major index to which they are compared.

I kid you not, take a look here for instance:
https://www.cnbc.com/2019/03/15/act...th-year-in-a-row-in-triumph-for-indexing.html
 
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