Technical, Fundamental, or Both?

Discussion in 'Options' started by tj1320, Mar 29, 2006.

  1. tj1320


    I've been doing some reading about technical and fundamental analysis and it seems like the people that do TA criticize FA and the people that do FA criticize TA. So my question to you guys is which do you use? Do you use a little of both? If so, which parts of each do you use? For example, MACD, stochastics, p/e ratio, etc.

    I'm mainly wanting to learn to find stocks that suck, so to speak. Its not that I'm a negative person, its just that I'd like to find bad stocks and buy puts on them, especially in case we have another terrorist attack or other bad event. I had a few call options before, during, and after 9/11 and needless to say I REALLY lost on those.

    I've decided that it would probably be best to learn how to do this myself instead of following an advisory service. I don't have a lot of time right now to learn but I will after tax season.
  2. I never met a rich technician... unless they are showing off their charts and hypothetical equity curves on their MagicWriter8.5

    Its just impossible to use both. Because its either you are a born fundamentalist or a technician. Those who use both are confused and are still struggling with how to make money in the markets.
  3. utter and complete rubbish

    it is not impossible to use both.

    i use both

    i profit

    obviously on a very short time frame, fundies are relatively meaningless. when intraday scalping the dow futures for instance

    on longter time frames, i use both.

    it's worked with XAU calls, YG futures, HANS long, AAPL calls, AAPL SSF's, etc etc

    TA and fundies can and do compliment each other. there need not be this false "either/or" dichotomy

    a good trader/investor can make money using either TA, fundies, or both

    a bad trader will be a bad trader no matter what he uses
  4. example. i have been buying gold as both a fundamental play, and a chart play.

    needless to say it has skyrocketed.
  5. fundamentals [intraday or swing] can help u choose da mkt to trade and technical pin-point da entry/exit...or wah'eva'.

    usin' both works wonders
  6. bitrend


  7. dac8555


    i disagree. i am up 14% year to date, on track for 50%+. I think it would be hard to use one without the other. i didnt start to make money until i used both.

    I use trendline
    rolling eps(the fundamental part)
    money flow

    and chart all of them.

    open up market wizards and you will see most people use both to varying degrees.

    but dont be confused with this. technical and fundamental is only about 30% of the equation. 70% is how you manage the winners and losers.
  8. tj1320


    All of the replies combined, I'm still where I started, lol. J/K but it seems like you guys are either for or against one or the other also. I guess I've just got a butt load of reading and virtual trading to do, huh? I assume that I should read everything about being able to pick stocks that are most likely to go up, then reverse that for stocks that are most likely to go down. That way I can profit as these bad stocks go through the floor by buying puts on them. I know it sounds easier than it is but there has to be people out there doing just that and making lots of money. Someone is profiting from my losses, lol.
  9. I never met a super rich technician.... but I read about them in all 3 Market Wizards books :D

    Technical analysis is just another tool, your trading wealth does not depend solely on the tools you use but your own personal risk and trade management styles and experience.

  10. i believe that talent/hard work/discipline is the most important thing

    MORE important than whatever "magic indicator" u use, or fundamental screen.

    it's about hard work, discipline, money management, and a little guts and innate talent doesn't hurt

    a good trader will make money. what particular methodology he chooses is tangential to that
    #10     Mar 29, 2006