You cannot ignore the fact, however, that the movement of the market is driven by the buying and selling of human beings, with agendas.
Fundamental information is the primary driver for stock market trading decisions, but technical issues must play a secondary role for the wise investor.
Say new information about a company fuels a buying frenzy at $50 and the pressure continues until the stock reaches $53 at which point the demand/supply ratio equalizes. Then bad earnings come out, and suprise the street, and there is a sell off, and the stock drops to $45.
Now there is a resistance point created at the 50-53 level since many of the new shareholders have held the stock, and will sell at their strike price if the get a chance due to fear.
Obviously if I could be right 51% of the time I can make money in the markets. But that will only apply to me if I have a disciplined strategy. And to formulate this strategy, I need all the information (fundamentals), and edge (t/a) I can get.
I only want 2 things. To be right about the direction of the market, and issues I follow 51% of the time, and the discipline needed to profit from this knowledge.
Reminds me of a familiar saying:
God grant me the serenity to accept the things I cannot change,
The strength to change the things I can,
And a big bag of MONEY.
respectfully,
cAPSLOCK |
