Quote from KevinK:
Hello,
I am conducting a poll considering the influence of fundamentals on the decisions made by ET members. Do you:
1) STRONGLY Follow the Fundamentals
2)CONSIDER the Fundamentals
3)LEAVE the Fundamentals to the 'Funny-Mentals'
To put the following in perspective, I'm currently a "student of the markets", trading with a small account, learning etc.
Anyways, I tend to swing and position trade, holding for periods ranging from days to weeks/months, and I
always look at the fundamentals for a company. I don't make my decision entirely on fundamentals, but I do look at things like revenue, profitability, current state of company's balance sheet and size of o/s float as part of my decision making process.
For example, I was VERY tempted to take a long position in EAG lately, but I didn't like the look of their funadmentals, particularly the number of shares o/s. Given their current share price and the fact that they have about 250mill shares float, they look like a good candidate for a 10:1 reverse split to me.
So despite the fact that the chart looks interesting (rising optimism, bottom appears to be in), I decided to pass for the moment. Probably going to listen to their conference call next week though to get a better feel for the company...
That said, I don't imagine that someone dealing in shorter timeframes (intraday) would bother looking at fundamentals, all that matters for a daytrader is the price action.
