Trader's Whiteboard: Lesson 6

Posted on by The INO.com Team

How many times have you turned on your television or computer to see that Corporation XYZ is expected to make huge profits, but when you look at the chart it is telling you otherwise?

Who is right? How do you determine what to look at when you are preparing to enter a trade? Adam has put together this Trader’s Whiteboard video to explain the differences in information and to help you wade through the “noise”.

Click here to watch Lesson 6 in the series and tell us what you think about fundamentals, technicals, and market perception in the comments section.

Enjoy!

The MarketClub Team

9 thoughts on “Trader's Whiteboard: Lesson 6”

  2. Adam,

    You were right on in your analysis of the stock Market. I will be watching for your next presentation. You advised to stay on the sidelines. I have written down your resistant points for Dow,S&P, and NasdQ.

    Will be watching with interest !

    Thank you again!

    Ernie

  3. Rob,

    Thank you for your feedback.

    A company’s sales, profits, margins, expenses, historic and projected growth rates, etc are important IF IT IS A STOCK you are talking about. If it is a commodity ... supply and demand is more important and is the key. Today was a good example of bullish fundamentals with CISCO's boss saying that the business climate and outlook is robust and the market dropped like a stop.

    The technicals and tools like MArketClub's Trade Triangles are in my opinion the only tools that can help you manage your money in a more effective way and cost efficient way.

    All the best,

    Adam

    1. I too am purely a technical trader. As such, supply and demand of shares are critical data elements in technical trading in addition to support/resistance, trend lines, ABCs, confluence, etc.

      However, this does not change the fact that for the whole world these are not FUNDAMENTALS of company. FUNDAMENTALS are as stated above.

      Clearly, supply and demand for a commodity "is" fundamental data (just about all there is), but that is not how it is presented in the general presentation of lesson 6.

      Clarification would be vert beneficial to your less experienced traders.

  5. While I agree that everything discussed in Lesson 6 is important, the discussion of FUNDAMENTALS is completely idiosyncratic. As described in the FUNDAMENTALS section, supply and demand of a trading vehicle, is a technical variable. For the rest of the world, FUNDAMENTALS have to do with a company's sales, profits, margins, expenses, historic and projected growth rates, etc. FUNDAMENTALS have nothing to do with the trading action of a trading vehicle whether it be an equity, an option, a future or anything else. In many years of trading and starting and operating several businesses as well as earning an MBA and studying investing, I have never heard of FUNDAMENTALS described as in this video. Doing so will only lead to confusion for less knowledgeable students and misunderstanding when investing.

    Sorry to be caustic and direct, but hearing FUNDAMENTALS described as in this video was very strange and disconcerting. I strongly suggest revisiting these topics and making corrections known to the customer base before it impacts credibility.

  6. I was just about to enter the market as I have been on the sidelines since Nov. After seeing your Video on Doe, Standard& Poor, and Nas. and you said to stay on the sidelines using the trade triangles.

    I am not an experienced trader and have lost quite a bit on money because of my ignorance.

    I do not quite know how to use trade triangle. My money is tied up in a 401 k so I do not have the flexibility to place stops but I love your advice. I can buy Sears in is my 401 k. have options to choose large cap, small caps, & S& P.

    Thanks for the videos!

    Ernie

  7. Good Morning Adam,
    Always appreciate the FTP segment which I have now watched twice. Still uncomfortable with the comment "The market always tells you the truth". In the short term you have "fakeouts" ,"shakeouts" and numerous ways to "paint the tape"- particularly in the first and last hour of trading. In order to trade with conviction ( always trumped by technicals ) I have to believe that only in Fair, Free and Stable Markets over the LONG TERM could one say that the market ( as a massive general consensus of opinion) "...always tells you the truth". Perhaps you have another context in mind which I have not considered.

    1. Ron,

      Overall the market is always right in my opinion. Short-term it may have a hiccup but overall the markets always right.

      All the best,
      Adam

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