I feel like fundamental analysis is completely useless

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

  1. RGLD

    RGLD

    How did you earn the respect of the Chef!? I'm interested....
     
    #71     Aug 14, 2020
  2. Tradex

    Tradex

    Well, it just happens that IronChef and I share the same views about the market, more or less.

    He is a nice, decent fellow by the way.
     
    #72     Aug 14, 2020
  3. deaddog

    deaddog

    The metrics I look at are ROE, earnings growth, gross margin, institutional ownership. What fundamental investors are taught to look at. I'm just looking for someone else to buy my shares when I decide to sell.

    I'm not aware of any studies, and I'm not overly impressed if you were to show me some. Studies usually start out with a bias and find data to prove that bias.

    Show me a rich academic. :)
     
    #73     Aug 14, 2020
  4. Tradex

    Tradex

    Yes, Ok, but how do you know that these metrics are indeed profitable, and to what extent?
     
    #74     Aug 14, 2020
  5. deaddog

    deaddog

    I don't know if they are profitable. I just know that is what other people look at because someone taught them that they are profitable.

    Just google how to pick a good stock and see what you come up with.
     
    #75     Aug 14, 2020
  6. RGLD

    RGLD

    Do you do options too?
     
    #76     Aug 14, 2020
  7. Tradex

    Tradex

    No I don't trade options anymore.
     
    #77     Aug 14, 2020
  8. bob666s

    bob666s

    This is a nice attempt to induce guys into divulge their methods, by feigning a false assumption that would likely trigger some emotional urge to respond. A lot of guys on twitter do this.
     
    #78     Aug 14, 2020
  9. themickey

    themickey

    You mean trolling?
    Nearly all of us do it on ET, it keeps the discussion going which is the whole purpose of the forum, lively debate. :)
    Welcome to ET, you have started well with your first post.
     
    #79     Aug 14, 2020
  10. Tradex

    Tradex

    Yeah right, like if "fundamental analysis" is the best kept secret in the trading community. :D

    For me fundamental analysis has been invented by brokers and money managers to give traders the illusion that trading is VERY complicated.

    In other words they are saying : "Hey, trading is extremely complex, you need "experts" like us to do the "fundamental" analysis for you, so hand over your money and let us do the heavy-duty homework for you!"

    And most people fall for that big fat lie and pay these guys good money for useless advice and mediocre performance that cannot even trail the S&P 500.

    Because what these guys are not telling you is that most money managers underperform the major index to which they are compared.

    I kid you not, take a look here for instance:
    https://www.cnbc.com/2019/03/15/act...th-year-in-a-row-in-triumph-for-indexing.html
     
    Last edited: Aug 14, 2020
    #80     Aug 14, 2020
    Grantx likes this.