Randomness And Trading

themickey said:
Ya, I take it all back. Forget stupid fundamentals, pure waste of time and energy.
How could I have been so stupid, I'm talking bs.
Guys, trade the price only, maybe spend the time studying TA & Indicators.
I'm on the other side of your trade and love losing. :)
More...

I can smell the humor, of course fundamentals are important. For 10 years I didn’t study fundies, thought it was hogwash. Then I came across merger arb and earnings trades and never looked back, it’s definitely in the speculators best interest to become familiar with the fundamentals of the underlying being traded, even if that trade isn’t based off a fundamental metric.
 
userque said:
True, price doesn't factor in all that is known. But price factors in all that is known to the traders that cause the price.

If something is not factored in to the price, then it had nothing to do with causing the price to exist where it did. So, it is not relevant.

When and if it becomes known (sudden news, for example), it too will be factored in (gaps).

Using the dotcom bubble again: Based on the fundamentals, the bubble should have never happened. Many smart fundamental traders went short, and lost their shirts. Many less smart traders, made a killing.

Those ignorant traders we referred to previously, mattered more than the fundamentals. And your only clue as to what those traders are doing, is the chart--not the fundamentals.
More...

dude, what? Lol
 
themickey said:
I trade hundreds of stocks, if I didn't factor in some fundamentals I think I would be wearing way more losers, way more.
Funny's help you play a bit more safer.
More...

YUp, for years my bread and butter was scooping up cheap shares in cheap stocks at their lows establishing a base then ride the price up (mark up). But I noticed a lot of these companies were shit, and price didn’t move much. Once I started digging into the fundies my buying decisions changed and I only bought cheap weak companies who had stronger statistics.
 
Copper hammered overnight (for us downunder) but banks were strong.
Today I would avoid copper stocks and gravitate toward traditional banks as a bias.
A wee example of a fundamental.
 
You must log in or register to reply here.
Back
Top