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Fred,
I was doing the same thing during first couple of years of trading. However,
as you have rightly observed there is little correlation, in stock price
movements with the fundamental events that you are tracking, in the
short-term. Fundamental events like the ones you track do have their impact
over the medium to long-term perspective.
What I have observed is that markets react to fundamental information
depending on the its current state. If the market is overbought or highly
overbought even a bullish news might lead to a correction, and when it is
opposite--oversold--even a bearish piece of news could lead to the market
bottoming out.
In this context, I strongly urge you to read "Trading on Expectation" by
Brendan Moynihan. His discussion on the Sentiment Activity Model which would
help you understand how to use fundamental information.
For daytrading, I mostly use technicals and the outcome has been quite
positive.
I hope this helps.
Thanks.
Regards,
Rajat
>From: "Fred" <fred9@xxxxxxxxxxxx>
>Reply-To: <fred9@xxxxxxxxxxx>
>To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>Subject: Doing your pre-trading research.
>Date: Sat, 22 May 1999 19:51:29 -0400
>
>I have been daytrading for a while now. I do lots of research the night
>before (and the morning before) the trading day starts.
>
>I am looking at earnings, splits, upgrades, newsworthy events. After all
>this research, I am NOT sure how much good it is doing for me during my
>datyrading daily activity. There seems to be little cause-effect from
>this
>information. For instance, if a strong stock splits....50% of those stocks
>go up and 50% of them go down on an intraday volatiliyt chart.
>
>
>What would be the highest gain things to do?
>
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