| | | It's human psychology.
The technicals and fundamentals are just tea leaves for understanding the mindset of the shareholders.
After all the years in the market, I can boil it down to two things:
(1) The most sophisticated infosystem, market intelligence, technical analysis system, etc, etc, cannot and will not save you if you are on the wrong side of the order flow. At best it will only limit your losses.
(2) It is always about the people, not the company. I always try to understand what mood the investors and traders are in, how they are thinking, and what they are expecting.
The charts and the balance sheets can only tell you the past. There is no God given law that says b/c the MACD is positive, the stock should go up or because the PE is high it should go down. At some point in time the stock will turn down and before it does that, it will have a positive MACD. So what I try to do is to analyze the people through the lense of TA, FA, news, etc. |
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