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Peter...
Sorry if you were misled but I personally don't use "fundamentals" to
choose an individual trade but instead use info to select stocks that
will be candidates for technical trading in the future. Rather than have
thousands of stocks to pick from, I "widdle" it down to as few as I can.
While trading, the only fundamental question I will have will be what
sector is it in.
I guess it was the fictitious tuna fish sandwich example that made it
sound otherwise, OTOH if someone finds it to be true, let me know. :-)
Regards... John
Peter M. Beckwith wrote:
>
> John:
>
> I have been watching this discussion for the past few days, and I cannot
> help but put my two cents worth in...
>
> First of all, this whole argument of fundamental vs. technical is relatively
> subjective. I mean in the old days, you had tape watchers and you had
> speculators, both of whom may have had success, depending on how they
> handled their losses.
>
> The whole argument that has been made that traders do not look at
> fundamentals is both right and wrong. I think the real issue is why would
> someone who is looking to scalp the market care about the underlying
> fundamentals. The fundamentals of a company will only serve to confuse.
> Most experienced daytraders will monitor price and volume and possibly
> sentiment. However, when you dive into fundamentals, how on earth do you
> screen out the noise? I mean who is to say in today's market environment
> that a low p/e stock is a better candidate for trading. In fact, I would
> have to believe that a low p/e stock in today's environment is an
> underperforming issue because it has poor growth prospects. As a trader, it
> is not your job to screen stocks for p/e's, rather you should screen stocks
> with profit potential and volatility.
>
> If you are managing a hedge fund or run a mutual fund and you have
> shareholders to impress, then you might want to think about p/e's sales,
> price to book , all of the babble that these guys throw at the investing
> public. (p.s. I once read that Peter Lynch made significant profits at
> Fidelity by doing position trading). And this is from the original
> fundamental guy...
> -----Original Message-----
> From: John Rastutis <Johnonetoo@xxxxxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Thursday, February 04, 1999 10:15 AM
> Subject: Re: Hello, Who I am
>
> >Len...
> >
> >First and foremost, I use TA and price as my trading tool. At times my
> >holding period may only be a couple of days but why shouldn't I look at
> >the longer term data? My success has increased generally every time I
> >took advantage of any piece of correlating information.
> >
> >Why don't traders use any information that can even in the slightest way
> >increase their odds? One needs every edge they can get. If I
> >find(through research and testing) that a CEO eats a tuna fish sandwich
> >at lunch and the next day his company's stock gaps up, I'll use it! I
> >don't want to "handicap" myself by ignoring data. It's like going out
> >into a forest that is infested with savage bears armed with a fly
> >swatter. Isn't there a saying about this? Something like "Armed for
> >bear"? Anyway, what's wrong with trading the price but having the
> >research behind the choice of issue. You're right on when you said it
> >can "minimize downside risk".
> >
> >Regards... John
> >
> >Len Olson wrote:
> >>
> >> Dear Paul,
> >>
> >> The reason I concentrate on fundamentals is to minimize downsize risk.
> >> If the company is solid financially AND makes timely SEC reports, to me
> >> it means that that it is a real company that is either making money or
> >> is in a position to weather a storm.
> >
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