Would you have bought on the fundamentals in March?
Fundamentals are not the drivers of stock prices - it's all about
supply and demand and that's what the chart patterns show in a
pictorial message. The buy and hold approach has amounted to
zero returns over the last 10 years. This market is very dynamic
and many who consider themselves swing traders are not as soon as
they see a small correction.
Now with that said, I personally look at the fundamentals to
gauge how much I'm willing to commit to a trade or investment.
Smaller companies (private companies) trade much different
than mature companies and this is where it's more important to due
some fundamental research. The earnings estimates were sky
high for 2008 but did that stop the market from plunging 60%?
No - and we have many executives who are members here who
learned this lesson.
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Would you have bought on
Anybody care to make 95%+ wins?
Posted by steve on 5th of Mar 2010 at 04:57 pm
Would you have bought on the fundamentals in March? Fundamentals are not the drivers of stock prices - it's all about supply and demand and that's what the chart patterns show in a pictorial message. The buy and hold approach has amounted to zero returns over the last 10 years. This market is very dynamic and many who consider themselves swing traders are not as soon as they see a small correction.
Now with that said, I personally look at the fundamentals to gauge how much I'm willing to commit to a trade or investment. Smaller companies (private companies) trade much different than mature companies and this is where it's more important to due some fundamental research. The earnings estimates were sky high for 2008 but did that stop the market from plunging 60%? No - and we have many executives who are members here who learned this lesson.