FWIW... There is a famous photo of Paul Tudor Jones' office wall with a sign that reads, "Losers average losers".
That's why he thinks her needs the Fund Analysis so he's always buying a stock at a good profit, which should always in theory go upward, so bad market buy more and in time it'll get back to profit. In the mean time, he makes some Div's. Old School investing style, using the fund get to check the true theoritical value of the stocks he's interested in. I guess a move above real value, would be take profit and wait for sub value to repeat ??
Fundamental Analysis = "The excuse to take/hold a position (or even add to it) when the charts say you probably shouldn't"
Totally agree, but we can't all be Momo day traders. The problem is, these valuations based on Fund are a) inaccurate b) a guess c) liable to change with news/earning and market sentiment. Bear market, all of the values will decrease as the price decreases.
Nobody has to be a "momo day trader". When I traded mutual funds for clients, I could do trades only at the close. You can be a successful player "running through your list of positions/possibles" once per day... probably even once per week. In fact, I don't recommend day trading in general. More better, "swing plays based upon daily charts" for most players. However if you day trade, decisions should be based upon the same chart principles of "daily chart swing plays", only in shorter time frames. The charts reveal what players are "actually doing with their money"... that is ALL that is worthwhile knowing. (If there is some big fundamental factor in play, its psychological impact will be reflected in the buying/selling/charts.) In case anyone is curious, FWIW... I regard "volume analysis" the same as fundamental analysis.... not reliable and should be disregarded. Making money in the markets while trying to protect capital is plenty risky and difficult. Don't make it more so. K.I.S.S.
once again this is not what i consider trading and is more so investing, the things u posted are very valid and they are the ones iam looking to study and analyze before i run through them in a down market, also once again the whole reason iam in stocks is because of excess capital in pretax money that cant be traded in futures or forex and its restricted to stocks,,, iam not expecting this strategy to beat the market drastically if any,,, but iam simply try to improve a bit upon buy and hold,,, whos to say it comes back? i dont know but all i know at my age (28) that if large blue chips are dropping 50%+ it means indexes are down heavily as well in which i would be plunging in and averaging down ( on the index not the individual stock),,, iam leveragin my human power and earning capital here, NOT TRADING skills
This is what iam looking to educate myself more and more about,,,, for example out of the 700+ stocks on the list as i mentioned before only about 15 are near my buying point or at it,,, one prime example now is GME (gamestop) and IRM (iron mountain),,,,,, to put this into comparison,,, when Chevron was at 70 back in august and its yield was 6% i obviously would have much more confidence buying Chevron and i simply hedge against my fundamental ignorance with the fact its a MEGA cap company,, when it comes to GAME STOP though,,, i got to think twice,, perhaps it could be my perception but getting more educated on the dividend sustainability and the company in general wont hurt whether its chevron or game stop..... remmeber i apply a standard position size of 10,000 to each stock
i believe i forgot to mention, the averaging down takes place on the index fund ( the other half of the pretax money) i never average down on the INDIVIDUAL company and get married to it,,, for example right now iam in IRM (iron mountain) 10k worth of the stock, i either holdl and collect their dividend or sell at my entry price +18% i believe averaging down is deadly and lethal in individual issues,,, but in the index itself like the s&p500 or so i believe its still a feasible and very profitable strategy specially when the money will sit for a while and when timing could be applied,.,,,, TIMING = contribute more in down markets,, timing like the one i mentioned above can affect the results even drastically and improve upon the simple buy and hold for decades plus, which i also believe works still
no one is using FA here to buy and hold or add to it,,, iam simply looking for FA to enhance my knowledge about the stock when its at my buying level (ie dividend =6%) let me remind u iam a pure technician in my trading as well (futures n forex) and i believe it in and made most of my trading money off of it,,, sure charts tell u where the instrument is going,,, but what does the chart tell u when u have Chevron at 70 and some change and its yield is at 6% and when you have a stock like game stop at 24 and some change and its yield is also at 6%?????