Hello, I am conducting a poll considering the influence of fundamentals on the decisions made by ET members. Do you: 1) STRONGLY Follow the Fundamentals 2)CONSIDER the Fundamentals 3)LEAVE the Fundamentals to the 'Funny-Mentals'
To put the following in perspective, I'm currently a "student of the markets", trading with a small account, learning etc. Anyways, I tend to swing and position trade, holding for periods ranging from days to weeks/months, and I always look at the fundamentals for a company. I don't make my decision entirely on fundamentals, but I do look at things like revenue, profitability, current state of company's balance sheet and size of o/s float as part of my decision making process. For example, I was VERY tempted to take a long position in EAG lately, but I didn't like the look of their funadmentals, particularly the number of shares o/s. Given their current share price and the fact that they have about 250mill shares float, they look like a good candidate for a 10:1 reverse split to me. So despite the fact that the chart looks interesting (rising optimism, bottom appears to be in), I decided to pass for the moment. Probably going to listen to their conference call next week though to get a better feel for the company... That said, I don't imagine that someone dealing in shorter timeframes (intraday) would bother looking at fundamentals, all that matters for a daytrader is the price action.
Kevin... It is quite different b/c for my day trading, only thing that matters is that the prices are not stagnant. My swing trading, FUNDAMENTALS are a huge factor. Always gotta keep the style and time frame in mind when conducting such polls. Without which, it can really mess up your results.