Which to trade? Fundamentals or Technicals
Created on: 2/9/2021 1:39:49 PM   Last Update: 2/9/2021 1:57:58 PM Posted by: RTT

which-to-trade--fundamentals-or-technicalsBest to trade technical's, best to trade fundamentals, best to trade technical's, etc.

Consider Paul Tudor Jones quote below.

.."Fundamentals might be good for the first third or first 50 or 60 percent of a move, but the last third of a great bull market is typically a blow-off, whereas the mania runs wild and prices go parabolic. There is no training, classroom or otherwise, that can prepare for trading the last third of a move, whether it's the end of a bull market or the end of a bear market."...

In short, markets start with macro but in the end they are more like a ponzi. 

Which is best to trade fundamentals or technical's?

The answer is both and with different weights at different stages of the market, in the early part of the market fundamentals will have more weight, but as the market matures fundamentals must be balanced with the technical's. Because a market involves humans, and fear are greed are at work, more so when prices are extreme.

To demonstrate the above listen to this very good fundamental chat on Ethereum. 

At the 41.40 min mark Raoul Pal answers the question as to a possible price forecast of Ethereum, he says:

.."nobody can think is exponential terms, humans are incapable of this"...

So there you have it after 40 minutes fundamental chat, price is determined by humans in a free market environment of greed (demand) and fear (supply). Technical's are used to measure lows and extremes of greed and fear, just like the price channels below:


But in the end even Ponzi met reality.

..."The minute you get away from the fundamentals – whether it’s proper technique, work ethic, or mental preparation – the bottom can fall out of your game"...

Basketball Legend Michael Jordan

The only thing in mania markets is a minute can be weeks, months or years.



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Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, Cycles, Wyckoff and Ney logic is the best way to ride the change, after all these methods have been used successfully for 70+ years. This post is a delayed and small sample of what is avaliable to members. Sign up to enjoy the full service.

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Investing Quote...

.."I have yet to find a man, in or out of Wall Street, who is able to make money in (markets) continuously or uninterruptedly. Like anyone else, I have good and bad periods."..

Richard D Wyckoff

.."It Ain’t What You Don’t Know That Gets You Into Trouble. It’s What You Know for Sure That Just Ain’t So"..

Mark Twain

.."The democracy will cease to exist when you take away from those who are willing to work and give to those who would not"...

Thomas Jefferson

.."man exists for the achievement of his desires"..

Ayn Rand

."Buying stuff people hate, that's the business we are in, right!"..."you may need to have a longer time horizon"..."be patient"..

Mark Yusko

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