Technofundamental

Discussion in 'Technical Analysis' 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.