Sunday, November 18, 2018

Fundamental trading is going away...Price action prevails

Once upon a time you bought shares of a company you believed in...in this day in age a companies performance and earnings play less of a role in its rising or falling stock price

IMO this is due to a couple things

1) Investors being overwhelmed with news they don’t believe... Real or fake. Call it what you want. I look at the entire market as one big pump and dump scheme.

I’ve seen outstanding earnings report tank a stocks price

I’ve seen earning fall short of goal and watched the stock take off.

2). Easy monetary policy by the fed enabling corporate buy backs This is a perversion of markets...but it makes sense. I understand the logic behind this happening.
This makes it hard for retail investors to understand what’s going on.

I’ll take it one step further and add that algorithm traders ( pretty much all the big boys) Are getting really dialed in. Nobody understands these complicated algos. If you’re trading with stop losses.. good F’ing luck to you

Let’s see some experienced folks add to this list 


Submitted November 18, 2018 at 10:15AM by animal-fun https://ift.tt/2qRgzCf

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