I don't know if it is just me but I am finding potentially good breakout set-ups, watching them breakout of a consolidated price range only to see them come right back to the breakout level and fall through closing me out at my stops. I just can't seem to get a run on anything. Any constructive thoughts?
I think a lot of people understand setups, but they dont understand the concepts. An understanding of the concepts will help you out. If you only have a setup, when it fumbles you don't know if its not working, or if its just a drawdown. For me, I focus on "where are we". When I look at a 120 minute chart, are we trending or in a range. Where are we in the context of a trend or range? Once I know that, then I will trade accordingly. Hope that helps. Brandon
Just out of curiosity does anyone at all study fundamentals, balances sheets, management etc before they trade a stock or does everyone on this board just trade a stock because of what they see on a chart?
That was insightful thanks Brandon, I have been on you site and found it helpful, nice layout. Do you offer stock selection?
Big picture I think about and use fundamentals.Like ..interest rates,economic growth,dollar trends,and several others.But it all leads back to charts and TA .I could care less what a companies fundamentals are, as long as it meets my trading system ,I'll trade it.
I don't do breakouts but follow through seems to be just fine lately. ....................................... I don't trade fundamentals because the timeframe is too long. Why tie up 10K for three months when you can be in and out several times and make the same amount in a few weeks. Also, IMO, the fundamental information that would be beneficial in selecting a stock is usually already priced into it by the time it becomes available to the general public. .................................................. I don't have a site. I feel so left out. I'm an expert tooo ya know. I can tell ya how ta make money.
wwatson1, "Just out of curiosity does anyone at all study fundamentals....." More money is made and lost following fundamental analysis than any other type of market analysis. "watching the breakout of a consolidated price range only to see them come right back to the breakout level...." A base is a base... a stall is a stall. They are not the same. Until such a time as the direction in the market changes, we don't know which one we're looking at. Currently, it doesn't seem it could find its way with a compass and a guide. Until it does, it's asking a lot to see much follow through with any breakouts.....my opinion anyway. While most admit that the human factor is the most difficult obstacle to overcome in trading, I respectefully disagree. IMO, it's still about moving with the trend, which many times means WAITING until there IS a trend, and once determined, following it until it changes direction.
In a way I follow fundamentals. I review IBD type stuff to see if the stocks with the high eps ranks are leading the market up. So far those stocks as a group have not really had much followthough. So I will not care about fundamentals until the market turns the good earners into good leaders. By the way this is not unusual. A friend of mine who writes a widely followed newsletter picked a fewgood winners off the bottom after the first mini rally. I asked in my good William O'Neal manner how come he did not pick the high eps high/ rs stocks. He said in his 30 years of watching the market the first leg up is usually the bargain hunting. Then if you are going to go into a bull market the new leaders assert themselves and that is when you would expect to see the high earnings growth stocks lead.