I feel like fundamental analysis is completely useless

Discussion in 'Economics' started by RGLD, Aug 13, 2020.

  1. ironchef

    ironchef

    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.
     
    #41     Aug 13, 2020
  2. ironchef

    ironchef

    Yes that is what I said everyday.:D
     
    #42     Aug 13, 2020
    Tradex and RGLD like this.
  3. Tradex

    Tradex

    Yes I know IronChef, fundamentals are supposed to work in the longer term (daily, weekly or monthly charts).

    Their alleged predictive value is still debatable however.

    But hey, if fundamental analysis can somehow help you (or at least confirm your position), so be it, why not.
     
    #43     Aug 13, 2020
  4. RGLD

    RGLD

    I remember buying this stock TITN in late 2000's. The fundamentals were top notch, IBD gave the stock a high rank. The stock is at $12 now and I don't care for the fundamentals anymore only for the purposes of writing this. So much for the long game, I'm glad I didn't average down.
     
    #44     Aug 13, 2020
  5. Stockboy

    Stockboy

    Okay you still have not stated are you referring to day trading, position trading, investing, or outright buying businesses ???
     
    #45     Aug 13, 2020
  6. maxinger

    maxinger

    [​IMG]
     
    #46     Aug 13, 2020
  7. RGLD

    RGLD

    I just trade. I don't use time frames, I have positions that I've been on since last year. I just find it a waste of time when I look at a good company and I see it already trending. I could have just found a trending company than see why it's trending.

    Just recently I've been looking at LULU. Great company, explosive growth and lots of potential. Oh what's that? It's already up like 40% this year? Is it over valued? Why I do all that research?

    The worst thing is if you look at a good company but it's trending down. You buy it thinking based on your research it's a good entry. Than when it goes lower, you buy more... That never ends well.

    And the opposite might be true, you find a trending company, you see bad fundamentals so you short it.......
     
    Last edited: Aug 13, 2020
    #47     Aug 13, 2020
  8. RGLD

    RGLD

    Why do people always think fundamentals is "Long Term" like some never ending void?

    You can always use fundamentals in quarterly reports. If you think they're going to have a good quarter, that's only a 3 month investment.
     
    #48     Aug 13, 2020
  9. Tradex

    Tradex

    Exactly.

    Sometimes at my local bar I hear total idiots saying stuff like : "Today I bought XYZ stock, it is a GOOD company!"

    Then I put the ticker symbol on my smartphone and show them that the stock is clearly in a downtrend. Their reply? "Nah, it's Ok, it will come back, the company is solid!"

    Yep, pure fundamentals crap in action.
     
    #49     Aug 13, 2020
  10. Tradex

    Tradex

    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).
     
    #50     Aug 13, 2020