I am a technical based trader but here is one instance where I do take a look at the fundamentals of a stock, and here is why: People who trade based on a chart will buy and sell on price and volume pattern, areas of support and resistance, and technical indicators like stochastics and bollinger bands. However fundies based traders will look for good P/E ratios, growth, etc - the chart doesnât mean much to them. Therefore, when a stock breaks support, or has patterns or indicators indicators are bearish, you can safely assume that the technical traders are either selling or shorting the stock. Conversely, when a stock has strong fundamental data, you can safely assume that there are some fundies based investors waiting in the wings for a good price. So we can generally draw the conclusion that: A. When a stock has weak fundamentals, and a weak chart, the selling will probably continue. B. When a stock has strong fundies, but a weak chart, it will probably be bought on dips, making the stock go up again. I have used this technique for buying long on dips, selling short, and setting stops and have had good results with it. Basically this is how I use it: If I am in a long position, and looking for a place to put my stop, I generally look to areas of price support. These are usually in the form of a moving average, trendline, or specific price where the stock has either met with support or resistance in the recent past. I will then look at the fundamentals as a gauge for how far below said support I will look to exit if the trade turns against me. If the fundamental info is weak, I can assume that there are mainly technical traders in the trade, and they will more likely than not be looking to dump their shares on a break of support also, so I will set my stop close to support with the assumption that selling will pick up on the resistance break, sending the stock proce down pretty fast. This allows me to exit a position gone bad with minimal losses. However if the fundies are fairly strong, I will generally give it a little more wiggle room with the assumption that at a low enough price a fundamental trader will be attracted to pick some up, and hopefully start a buying rally. The same technique can be applied to short sale candidates, identify a weak looking stock just above support with weak fundamental info, and set an alert for just under the support. Generally a break down of support on some volume will give you a fairly high chance of catching a nice drop in the stock. All that said, it is an illogical market, so sometimes to win you have to be slightly illogical too. Happy trading!