Is this a risky move? Are fundamentals a necessary ingredient?
To all the successful technical analysts:
What are your indicators of choice?
What are your favorite moving averages to use?
What is the best tool to analyze stocks?
The best broker to trade them?
Can past performance really predict the future?
Trading indicators are best used along with money management and good risk control, using tesnical indicators alone will not enable you to ne a successful trader, the market is just too random
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In the stock market, you should have a basic idea of fundamentals. You should be able to look up a stock and determine whether the company is strong or weak, without looking at the chart.
But, I believe that ultimately, your trading decisions should be based on technicals. For a technical trader, past performance is the only way to predict the future. But it’s not a guarantee, which is why the combination of technicals and fundamentals is powerful.
The guys that are successful at this are not ‘financial analysts’ by education or previous experience. They are PhD mathematicians and physicists specializing in an area of mathematics called ‘signal analysis’. Essentially they write very large, very complex mathematical algorithms that identify patterns and weigh their significance. This isn’t like running a computer program you can pick up at best buy. Because most investment firms have these quants (not statistical quants) on staff and are buying based on indicators obtained from similar mathematical orthodoxy, certain subtleties change. In fact, the similarity in speculation actually alters the previous relationship between some indicator and some market trend. So the mathematician is constantly adjusting the algorithm–recalibrating it to the market over and over again. Its still not a guarantee of success though. My opinion would be these guys are on average only slightly more accurate in bear/bull markets than statistical quants or traditional analysts, but earn their keep when the market goes horizontal. Their base salary runs between a quarter million to a half million a year (plus performance bonuses which can be in the millions), so I’m guessing there’s something to it. I don’t think that really helps you out much though.
I use tradingday.com Here is my proof for the last 2 days on my picks. I am a day trader. This web site will show the world trading markets and analysts ratings. I have made more than 20k in penny stock trades in the last 2 days. I doint want to promote voulme change in penny stock that i have picked. That i why i dident show you my stats. I drive a GT bentley and i am 27. I love to help people in the markests that can be nasty if you doint know what you are doing. I also trade penny stocks. Hope that this helps There is a lot to take in on this web site and then there are other things that you have to look at the average volume ect.
ACTION SYMBOL PRICE PAID LAST PRICE CHANGE QTY MARKET VALUE PROFIT LOSS %
TENNECO INC TEN $7.85 $9.24 $1.24 1,880 $17,371.20 $2,613.20 17.71%
RENESOLA LTD SOL $6.57 $7.41 $0.70 3,691 $27,350.31 $3,100.44 12.79%
LITHIA MOTORS INC LAD $8.13 $8.49 -$0.72 2,926 $24,841.74 $1,053.36 4.43%
BELO CORP BLC $2.07 $2.16 $0.04 6,300 $13,608.00 $574.00 4.40%
CLEAR CHANNEL OUTDOOR HLDGS CCO $6.14 $6.39 $0.13 3,821 $24,416.19 $955.25 4.07%
SLM CORP SLM $7.68 $7.91 -$0.02 1,000 $7,910.00 $230.00 2.99%
CARMAX INC KMX $13.38 $13.61 -$0.09 1,847 $25,137.67 $424.81 1.72%
MOTOROLA INC MOT $6.73 $6.71 $0.27 3,755 $25,196.05 -$75.10 -0.30%