Fundamental - Technical - Speculators - Smart Money

[Billy Gates]

How is the end clear beforehand? If trading was that easy we'd all be rich beyond our dreams.

Your post illustrates what I sad in the previous post. We trade differently but that doesn't mean one of us is right and one is wrong. We just don't have the same expectations of where we want to take profits or what time frame we are looking at.

Peter

Ok, sorry. i should have been a little clearer there. What i meant was that if you look on a daily or weekly chart then the levels are not far from where price is now.

But that once again is objective, as some traders look for different things. This as you say, is down to how we all trade differently.

 

[Vicorka]

We trade differently but that doesn't mean one of us is right and one is wrong. We just don't have the same expectations of where we want to take profits or what time frame we are looking at.

Peter

Agree, we use different strategy and we trade on different time frames. And none of us is wrong as long as we are still in the game...

Yet, my main point why I started this thread is that you cannot relay solely on FA and trade without TA like it was 20 years ago.

 

[wackypete2]

Sorry, I may have inadvertently diverted the discussion off topic.

Apologies.

Peter

 

[Vicorka]

Can any of fundamentalists explain me, who knows nothing about fundamental analysis, why when the country's economy looks worthier (I could be wrong) than it was in 2005-2007, the stock market indexes (S&P 500, DJI and Russell 2000) are 20-30% above the levels the indexes saw in 2005.

Did the economy really became 20-30% stronger than it was in 2005-2006? or stock market does not go along with economy?

Why the stock market completely recovered from the crash in January 2011 while the economy was still down?

What are economic fundamentals of market trend?