Technical vs fundamental trading

[Euler]

Every few years I re-read the intelligent investor and each time it makes more and more sense. This has to be the best value oriented book available.

[CaerMyrddin]

Returned package from amazon, another week to get it

[Euler]

This is interesting: -

http://www.value-investing.eu/papers.aspx

[Euler]

Buffett's letter to shareholders is a decent read this year: -

http://www.berkshirehathaway.com/letters/2010ltr.pdf

[Quinny]

I am still awaiting the answer here.

There is only ONE thing(literalist can eff off at this juncture) that makes a company successful.

If you never recognise this fact it doesn't mean you can't still be a winner.

But...
Once you truly get it, golly! it makes it all so transparent.

As an example, ask yourself how and why M&S turned their fortunes around.

Or... What makes Warren Buffet's company so successful?
BIG clue there.

Or, why was there never likely to be a penalty in CHE v MANU game tonight.

Google this... "How To Sort The Wheat From The Chaf"

[CaerMyrddin]

Imthecrypticquinny?

[Ferru123]

Interesting quote:

"This idea that you can beat the pros as an active trader by following the news will be an expensive proposition — guaranteed. You may indeed be cleverer than average, but you’ve got to be quite a lot cleverer than average. There are many great, clever people out there and they spend their lives 24/7 working to extricate profits from the markets. At least with a trend following philosophy you have a chance."

From The Little Book of Trading: Trend Following Strategy for Big Winnings by Michael Covel

I suspect Covel is right, and that the people who can make fundamental-based investing pay are right at the edge of the Bell Curve...

Jeff

[superfrank]

"This idea that you can beat the pros as an active trader by following the news will be an expensive proposition — guaranteed. You may indeed be cleverer than average, but you’ve got to be quite a lot cleverer than average. There are many great, clever people out there and they spend their lives 24/7 working to extricate profits from the markets. At least with a trend following philosophy you have a chance."

People have been making fortunes trading gold long for many years now - many will be trend followers (clever ones and numpties), while many will be buying for fundamental reasons (clever ones and numpties).

[Ferru123]

But there's a big difference.

Over 10,000 trades, you'll only succeed as a fundamental trader if you're exceptional.

Over 10,000 trades, you'll only fail as a trend follower if you deviate from the script (which doesn't require much intelligence, but needs a hell of a lot of mental strength).

Jeff

People have been making fortunes trading gold long for many years now - many will be trend followers (clever ones and numpties), while many will be buying for fundamental reasons (clever ones and numpties).

[superfrank]

Fundamental traders don't purely base their decisions on their fundamental views - they also use technical analysis to decide on their entry/exit points. It's just they they choose which way to trade an instrument based on other things than just looking at a chart - calculating value with an extra variable.