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Which to trade? Fundamentals or Technicals
Created on: 2/9/2021 1:39:49 PM

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:



ETH





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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Investing Quote...

...“I believe that anyone who is intelligent, conscientious, and willing to put in the necessary time can be successful on Wall Street.  As long as they realize the market is a business like any other business, they have a good chance to prosper.”...

Jesse Livermore


.."Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't under-estimate the value of that, but they're not designed to take care of social needs"..

George Soros



.."A lie told often enough becomes the truth"..


Vladimir Lenin

..."The four most dangerous words in investing are 'This time it's different' "...

John Templeton


.."it is better to have few stocks and to watch them carefully”...

Bernard Burach




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