Why do you buy shares in a company?
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prawn_86
Mod: Call me Dendrobranchiata
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To (hopefully) make a profit
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Why? Profit
How do i choose? Technical Analysis
How do i choose? Technical Analysis
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Price action?
All i know about a company usually is the 3 letter asx code. I don't care for fundamentals at all.
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LOL. Same. I don't have a clue half the time. Something will come up on the news or this forum about some company doing crap and I think, "Oh yeh, I traded that last week. So that's what they're about."
For me, it's all about the price action in relation to what the broader markets are doing.
LOL. Same. I don't have a clue half the time. Something will come up on the news or this forum about some company doing crap and I think, "Oh yeh, I traded that last week. So that's what they're about."
For me, it's all about the price action in relation to what the broader markets are doing.
Sounds like a recipe for disaster..
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The price action of a company never lies
On the other hand, speculative forum posts, shonky news posts and balance sheets can
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Sure...for someone who doesn't know what they're doing. I've done my time, and I know how to make it work.
Same here too. Price action is all I really look at. The only fundamental thing I'm interested in is what sector it's in - don't want to know any more than that.
Dunno...many investors thats have made a lot of money buying on strong company fundamentals.
skc
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Someone smart once said stock market is a voting machine in the short term and a weighting machine in the long term. So depending on your time frame, trading against fundamentals is dangerous for anything longer than a few weeks imo.
Some quick fundamental research will make sure that you don't buy into companies like hat makers in the 30s, film makers in the late 90s or property trusts last year.
I can pull the trigger when both fundamental and technical/chart are in agreement. This may mean I have a much smaller universe of stocks which I trade, but that's what I feel comfortable doing.
Some quick fundamental research will make sure that you don't buy into companies like hat makers in the 30s, film makers in the late 90s or property trusts last year.
I can pull the trigger when both fundamental and technical/chart are in agreement. This may mean I have a much smaller universe of stocks which I trade, but that's what I feel comfortable doing.
I'm only trading short term anyway. Most of my trades are closed in under 4 weeks. The longest I've held any stock for in the last couple of years is 8 weeks.
Fundamentals are old news anyway. They have already been priced in to the stock. If a stock is rising on high volume, I don't need to know WHY this is happening. Just the fact that it rising is all the info I need.
So_Cynical
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I'm a dart thrower (punter) i like a falling chart or at least side ways, quality
operations with substantial market share in whatever there doing, also like
a viable reason why others are selling...the story has to make sense for me.
Also tend to just focus on the 80 or so company's i know well, doing pretty
good lately, sold CPU today after buying near bottom 4 weeks ago...easy money.
operations with substantial market share in whatever there doing, also like
a viable reason why others are selling...the story has to make sense for me.
Also tend to just focus on the 80 or so company's i know well, doing pretty
good lately, sold CPU today after buying near bottom 4 weeks ago...easy money.
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Warren Buffet made that quote.
I invest based on fundamentals, ensuring the company is undervalued.
However, in this market fundamentals don't mean much and a company that is undervalued may keep falling. This is why I have decided to learn about technical analysis so I can trade in any market.
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No I think that you will find it was Benjamin Graham, Buffett's mentor.
Price action. The trend is your friend.
skc
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Stock rising on high volume - without knowing anything about a stock, you could have bought into BNB when the hedge funds were covering their shorts.
If it only saves you once a year, it's a good year
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