Technofundamental Analysis

Discussion in 'Trading' started by 2manywhiners, Nov 17, 2005.

  1. Anyone reading SFO - "Stocks, Futures, Options"

    November 2005 issue has an article called "The Technofundamental Revolution"

    It touches on combining Fundamental analysis with Technical analysis, and I found the article to be very interesting. Being a purely "technical" newcomer, I had learned a while back that in today's market, a short-term trader has no use for Fundamental analyses. Well I must have took that to heart very easily, because I never gave fundamental analysis another thought. At least until I read this.

    If anyone out there is trading and making decisions based purely on numbers, try screening your current stock list with fundamental analysis introduced to the mix. I found I've been trading [short term] some securities that long-term traders & investors wouldn't touch with a 10 foot pole. I always chose which stocks to trade based on Technicals only [example: last month's avg.price, avg. daily volume, current price, etc] . Just by cutting out poor long-term performers from my stock list, I've already seen an increase in my trading performance [it was likely due only to cutting out the stocks that had been hurting me more than any of the others] I'm currently exploring other ways to incorporate fundamentals into my trading arsenal.

    Anyone with suggestions of how to expand technical analysis into a hybrid with fundamental, please post. I'm sure I'm not the only "numbers" guy who is intrigued by fundamentals. Thanks.
  2. bighog

    bighog Guest

    Fundamentals are for investors, technicals are for traders. There is a big difference, an earnings report, jobs report etc can drive a stock, index or bonds etc crazy for an hour or maybe even a day or so. traders live for those reports but in a investors mind and looking at the "BIG" picture a days trading can be meaningless.

    Lesson learned: Know your time frame and adjust the new inputs accordingly, if you mix time frames with todays news it can cause pain, real pain.....:)

    To me, the beauty of being a daytrader is when you wake up in the morning and you are flat, then the NEW day is your oyster. What happens during the new day is reflected in the charts. My job is not to worry why. I can care less, besides, how would i know what the reasons are? No one calls me and says we are gonna run a program trade in 10 minutes, no one calls and says they are gonna announce that the last few qtrs of earnings was really a funny joke....:D

    The "SCREEN", that is my news reporter, my guidepost, my roadmap, my GPS and combined with intuition based upon past history, that is all there is to it....No need to even watch "FOX" news for the latest reports on their never ending TERROR reports for the folks that listen to their propaganda mind numbing blabber.....:eek:
  3. Do a search on Dan Zanger, or go straight to his homepage

    That guy traded $10,775 into $42,000,000 in less than 3 years using an IMO brilliant combined approach.
  4. As with many aspects of trading, it all depends on your strategy and timeframe. I trade equities "longer" timeframe - a few days. Filtering my list with basic fundamental data is extremely important for my strategy, and can strongly impact the results.

    On the other hand, if you're scalping for seconds or minutes, it would not have much impact on your results.
  5. bighog

    bighog Guest


    In the post above yours, there is a web site of Dan Zanger's 10 Golden stock rules, now i do not trade stocks but in conjunction with this thread i took a look at the 10 "GOLDEN" rules........I mean not regular rules but the GOLDEN ones that on another part of the web it states you get in before the institutions.....YUMMY STUFF.

    Well if you look at the rules, What do you see? YEP, technical stuff.

    Now as stated before, whatever works for you is fine, there is enough money for winners as long as the wide eyed and bushy tailed keep coming......

    and upon reading the * notes from the 10 rules it states paraphrased , when earnings are coming out you should be out of the stock or lower the position amount. I always loved that phrase, "either be out or lower your position", reminds me of telling a teenager, "Well don't go all the way, but petting is ok". ....