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Strategies & Market Trends : Technical Analysis- Indicators & Systems -- Ignore unavailable to you. Want to Upgrade?

To: TA2K who wrote (3247)	2/9/1999 6:35:00 PM
From: Jurgen	Read Replies (1) \| Respond to of 3325

I vociferously disagree that FA need not be considered.. YOU are the trader, YOU set the trading rules. If YOU say FA needs to be considered, then..just do it ! I don't care for fundamentals. Imagine a trade goes against you and you're stopped out at a loss - would it make you feel better if the company had great fundamentals ? How would you feel if you made 10 points in 5 minutes with K-TEL ? Jurgen

To: TA2K who wrote (3247)	2/9/1999 7:41:00 PM
From: Richard Estes	Respond to of 3325

If you have a way to scan for them go find something that does track, don't listen to gurus, find out for yourself. For what type of trade? How long would you hold the stock? If you want to hold a stock for next two years, it would be good to have some funnymental basis. When you enter and exit on TA and you have tested the system so you trust it never to hurt you and you place a safety valve stop on it; Then what funnymental should change that? You buy strong stocks, you sell weak ones.

To: TA2K who wrote (3247)	2/10/1999 3:25:00 AM
From: AL R	Read Replies (1) \| Respond to of 3325

Nicholas / Technical Analysis The first thing you have to realize is what technical analysis is. It is a study of mass psychology. The chart indicates how the market feels about a stock. Doesn't matter what the company does or what it fundamentals are. Internet stocks are a good example. No earnings and high valuations. You can find many examples of stocks with good fundamentals that go down in share price. It is what the investors in the market feel about the stock which drive its market price. The market is a large auction. If fundamentals were the only thing that mattered, why is a stock's price up one day and down the next? Why do fundamentally good stocks drift down with the general market? Fear and greed drive the market. If you can read the market's mood, you can make money. Fundamentals are for long term investors. Technical analysis is for short-term traders. Both can make money. The fundamentalist has to be prepared to ride the ups and downs of the market place and wait until the market place discovers his stock. The technical analysis has to move when the signal is given and to get out when indicated. Patience is not his virtue. If a stock price is not doing what is expected, he should probably get out of it, no matter what the fundamentals are. That's my take on it. Take care, Al

To: TA2K who wrote (3247)	2/10/1999 9:49:00 AM
From: Robert Graham	Read Replies (2) \| Respond to of 3325

I think you will find that most professional traders do not follow the fundamentals of a company. Perhaps they follow the news events that can relate back to the fundamentals such as an earnings report, only because news events have a short term effect on the price of the stock. Do not confuse LT investing and ST trading. In many respects they are as similar as night and day. This would be one of the biggest mistakes for you to make in your trading career. If following the fundamentals will make you more "warm and fuzzy" inside with the trade, then why not follow them. But in a short term trade, do not forget it is the technicals that will determine entry and exit, and not the fundamentals of the company behind the stock. In this case the fundamentals can provide and additional filter on top of a technical scanning for the type of stock you are looking for. With this said, there are some data items in your list that may impact how the stock trades. This would be the figures regarding the float, or more specifically the amount of stock that is available to trade. This includes consideration for insider and institutional ownership. Also short sales may be a factor depending on how high this figure is compared to the float. Earnings growth, or even more importantly, earnings momentum also can be important. Even though this next suggestions are not related to the fundamentals of a company, for instance I think you should consider some type of relative strength filter. Also select stocks in sectors that are performing well with respect to the market, and at least that are in an established uptrend. Looking at the daily trading volume and how this compares to lets say the 75 day EMA of the volume can also prove to be useful. IMO the secret to short term trading is identifying the stocks that will provide you with the highest probability for a thrusting action in price that you can trade off of and ideally the lowest probability of breakdown during your trade. There are different ways in identifying this type of stock. Looking for breakout candidates and playing momentum stocks are two ways to approach this type of trading. I do think the book by O'Neal is a must read for you. Just my thoughts on this subject. Bob Graham