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Why I have no argument with Fundamental vs. Technical

Discussion in 'Stock Market Nuts and Bolts' started by tech/a, Feb 18, 2020.

  1. tech/a

    tech/a No Ordinary Duck

    Likes Received:
    Oct 14, 2004
    Why a new thread ?
    Because I dont want this to be lost.

    Global fundamentals Move Markets
    Sector Fundamentals Move Market Sectors
    Company Fundamentals Move Individual Companies

    + or -

    Technical's Assist in
    Risk management
    Trade management.

    They give a snap shot at any point in time into the participants.
    High tides float ALL boats but its the skilled Skipper that knows when
    to fish, Where to fish, keeping away from Hidden Rocks that could sink his ship
    and weather storms.

    End of argument for me.
  2. investtrader


    Likes Received:
    Jul 25, 2016
    I agree. Even though I trade a quant system that is back tested using technical analysis, I rely on the fundamentals of the company as well. Actually to clarify, my systems have been in real time mode for many years, so I am talking about out of sample data really. This may surprise some of the system traders on here that a technical trader is mentioning fundamentals.
    I look at it this way - my systems hold for quite long periods of time. I get way more signals generated than I can take so why not use an extra filter. I do know low priced stocks are better but I don't follow this religiously. I try to stick to more quality companies but I will add some spec names for a few positions if I like the story.
    I will also just jump on a trend if I come across a really good story with a perfect looking trend e.g something that looks like CDA or DTL.
    What I have found is my drawdowns over the years are less than my raw backtests.
    The other thing I do is subjectively eye ball the chart before I take the signal. Some stocks just don't seem to trend.
    Keep in my mind I am trading longer term weekly charts. Shorter term doesn't matter IMHO.
    It doesn't really take much time. I use Stockopedia currently as my fundamental source.
    Knobby22 likes this.
  3. systematic


    Likes Received:
    Sep 30, 2012
    Good to see your view on this has changed over the years, @tech/a
    Changing and growing in your views is something so many cannot seem to do (i.e. what they've always believed about something is what they will always believe about something) and I always respect someone who can.

    For me, as I've stated before (in one of those old threads that turned into another 'technical vs fundamental' debate): it's just data to me. I don't use the words, 'fundamental' or 'technical' in my own thinking (I use them for convenience in communication, in the sense that others use the terms). Financial statement data, price data, volume data, macroeconomic data...again, it's all just data to me.
    As I stated in that thread long ago, in my mind it's 'quantitative' vs 'qualitative'. That much better describes the dichotomy of approach to investing in my mind. It was easy for me to follow the religion of 'quantitative' from an early age as an investor (i.e. before I even had money to invest). Qualitative was easy for me to disregard as my personality is such that I change my views on things (not just talking investing here) over time (in the micro detail I mean...many macro views have stayed the same); so, I'd never tend to trust my own opinion on those things anyway.
  4. frugal.rock

    frugal.rock "Time wait's for no man"

    Likes Received:
    May 3, 2019
    Have come a long way since May last year.
    Started using FA, have progressed to TA but still want to know about the FA to an extent, normally just recent activity.
    Take Zoono for example, there announcement today has the virus being tested by their product.
    Results expected imminently.
    Lab in Germany. Another Ann tomorrow morning? or Thursday?

    Really, they complete each other.
    Like bacon and eggs...hmmm

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