I think it depends on your time horizon. Fundamental analysis is the most useful for a long-term investment, technical analysis for the medium term, and price action for the very short term. If you are day trading, ignore fundamentals entirely. If you are in it for retirment, you should be almost entirely guided by fundamental analysis.

I think days/weeks/months you are probably on to something but from a multi year standpoint fundamentals win.

Technicals will tell u baba et al have more pain coming, so in the process of trying to time the bottom u might lose opportunity for baba at $200 which in 5 years will be a pay off



^
Exactly

This post was edited by Bazi on Jul 8 2021 05:29pm

I disagree, now there is a bunch of context as to why I disagree, but to save you from the essay of bullshit that won't matter to you, here is the thing.

Yes, most investors use fundamentals, however fundamentals are lagging, you will never get the best price. Using fundamentals is a pure gamble on whether the instrument their trading will rise or fall. Why? Because it has no perception of where price wants to go. There are specific guidelines price has to follow in order to achieve or fail certain areas. The news for BABA could be the best news ever, but if price needs to gain or fail a level, it's going to do that before it moves into the favor of the news. More often than not, news is used to reinforce liquidity for big boy traders to exit/enter their positions.
In terms of long term investment, the best way to invest would be price action.
Why? you may ask, because the price action never changes regardless of the time frame you are on. They are just buckets of time. A monthly chart will perform the same as the weekly, daily, 4 hour, 30min ect... So if you are doing longer term investments, "Greater than 1yr hold" you can use the yearly/monthly chart to create a bias. This will allow you to achieve the best price possible and with the understanding that price has to respect certain levels, you can add, or trim, your positions accordingly.

Why do most people use fundamentals? Because they don't understand price action, and that's fair, it's not an easy skill to learn, it is much easier to read a 10Q and a few blog posts of someone summarizing some bullshit about a stock and creating a bias.

I can provide you hundreds of charts for examples, but I'll just simply leave this here, the chart I posted earlier respected it's level, and traded to the next expected level. This would happen no matter what, regardless of the timeframe. Whether this was a yearly, the same shit would have happened, it would've just taken much much longer to achieve.

1. https://s3.tradingview.com/snapshots/n/n8pSrBCD.png
2. https://www.tradingview.com/x/V19wq1mV/


Fundamentals are useless if you understand price.
There is never a time where they have a use case after you can read a chart because it is all priced in.
I understand the average person is unable to read charts, but that's not the point i'm trying to make.

Price action / technical analysis is superior to fundamentals in every form of investing in the stock market.

here is baba for you from a technical perspective, i have marked all the significant levels. as-well as my dca box. https://www.tradingview.com/x/7px4GknV/

E: if this then that.

This post was edited by Bjorni on Jul 9 2021 06:05am

So you're a billionaire then? Since you've cracked the code to investing?

I'm not being facetious here. If you have some secret sauce to predicting prices, then put up or shut up. Best thing about the market is you can test your predictions immediately and in real time with your own money.

This post was edited by NetflixAdaptationWidow on Jul 9 2021 10:20am

I mean the proof is in the pudding right. Heres a video of that trade on a 10k account, not a billionaire, and probably trading with less money than most on here, but It's scaling up since haven figured out proper price action, and the great thing is, there's still so much more to learn.
https://youtu.be/KMy5j9h2xas

The premise of investing is anchored on fundamentals, for the most part. If Baba were to be delisted from the NYSE, I guarantee you S&R lines on a chart will not stop it from going to where it wants. Technicals allow you to play the noise and predict short-term sentiment and price movement in the market. Fundamentals reign supreme in the long run.

I don't care about youtube videos. I want to see your total portfolio.

If you've cracked the secret you should be showing ridiculous gains right?


Also be careful, because once something starts looking like "easy money" everybody else will start to act on it, and it won't be easy money anymore.

The question isn't getting money from suckers, it's keeping ahead of all the other people also taking money from suckers.

This post was edited by NetflixAdaptationWidow on Jul 9 2021 03:44pm

Didn’t read thread but fundamentals absolutely matter and technicals in many ways are the symptom to say one way or the other.

If a company is growing sales, margins, lowering debt, launching product lines, etc that’s going to be reflected positively in the chart in the long run. There’s no two ways about it. You can’t separate fundamentals and technicals for very long. Technicals will always revert to what the actual numbers are telling, it’s only a matter of time.

Did I say I cracked the secret formula for gains? The entirety of this post is to point out that fundamentals are always after the fact and lagging...
I never claimed to have the secret goose egg strategy, all I said is that trading fundamentals is useless if your know how to read price action. That's just a fact.. and you can argue it all you want, but the reality of price is that it trades level to level/if this then that.

Is price showing accumulation? Did we gain support? Then we trade towards support lost. Did we gain support lost? No, then we trade back to untested level. Did we gain support? Yes, then we trend back. Rinse hands and repeat. Price moves level to level, regardless of fundamentals/news. You can literally see this in the BABA chart I linked.

I will not share my portfolio, you and I both know that's not smart. I have two brokerages public already, and they are for futures trading only. The rest will remain private.

Also, I don't think it would hurt if more people learned how to trade price properly. It definitely wouldn't hurt the strategy at all if that's what you mean.