Technicians v. Fundamentalists

Discussion in 'Options' started by Kanzei, Jun 25, 2008.

  1. Kanzei


    From the Option Addict (

    "My next best attribute is that I am a technician, not a fundamentalist. Yes, I am what! I believe that fundamentals are already priced into the market, and have no impact on short term price action. I dare you to get into that argument with me."

    I found this statement very surprising, and want to hear reactions.

    I tend to think that past patterns cannot accurately predict the future, because the fundamental first principle in equities is emotion.

    Technicals have a self fulfilling prophesy component, but an individual institution or piece of news can and will blow the crap out of a technical analysis every time.

    additionally, I can make a technical case to buy any stock at any time, and a technical case to sell that same stock at any time. there is no technical analysis agreement, and I have always thought it was because the "fundamantalists" are right.

  2. sg20


    Fundies are good for position trades and TA's are good at reading market conditions. Learn both then you'd have a complete set of tool as a trader.
  3. Im a techie, but i dont believe that i can justify a long or short entry on any given time frame. Maybe it just comes down to good trading? I wait for the trade to fit into my analysis as well as my risk/reward tolerances. A little bit of fundies never hurt either.
  4. Depends, if you plan to do a long term investment, fundamental is more important. But as a trader, i definitly am biased towards TA. Also technie doesnt automatically mean some guy trying to match all those fancy patterns, indicators, etc...

    Some of the best techies only use the very simple stuff - price, volume, support/resistance, and MA.
  5. I am not much of a technician myself. I have tried putting on zillions of trades according to technical analysis and it has not worked for me. Nowadays I look at other variables to determine my game plan. However if someone insists that TE is great and works for him, hey that's also great. Not everything is priced into the market right away. The market soaks in certain news up to 3 days and other big surprise news can take up to a month or three months. That would be argument for that guy.