{"id":396,"date":"2008-04-18T06:50:29","date_gmt":"2008-04-18T10:50:29","guid":{"rendered":"http:\/\/club.ino.com\/trading\/2008\/04\/18\/fundamentals-vs-technicals-which-approach-is-right-for-you\/"},"modified":"2008-09-05T17:12:50","modified_gmt":"2008-09-05T21:12:50","slug":"fundamentals-vs-technicals-which-approach-is-right-for-you","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2008\/04\/fundamentals-vs-technicals-which-approach-is-right-for-you\/","title":{"rendered":"Fundamentals vs technicals, which approach is right for you?"},"content":{"rendered":"<div class=\"moz-text-flowed\" style=\"font-family: -moz-fixed; font-size: 13px;\" lang=\"x-western\"><span style=\"font-family: Verdana; font-size: medium;\">Let me start by saying that the fundamentals are very important. Without  fundamentals the markets would not move, they would just stay flat and  that\u2019s no fun. <\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\">Fundamentals drive the market and that\u2019s true today just as it was true  when trading first began. <\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\">So what about the technicals, should we just push them aside and forget  about them? I think not. The technicals help in timing the fundamentals.  More importantly the technicals point to when you should exit a position  when a market turns. <\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\">I had an interesting comment come across my desk yesterday from <a href=\"http:\/\/broadcast.ino.com\/education\/croxcrash\/\">my video  on Crocs (CROX).<\/a> I would like to share this gentleman\u2019s comments with  you.<br \/>\n<\/span><span style=\"font-family: Verdana; color: #0000ff; font-size: medium;\"><br \/>\n<\/span><span style=\"font-family: Verdana; color: #0000ff; font-size: medium;\">Adam, <\/span><\/p>\n<p><span style=\"font-family: Verdana; color: #0000ff; font-size: medium;\">I paid $995 a year for a monthly investment newsletter for the past 2  1\/2 years.  They guy who publishes the newsletter is a \"stockpicker\" and  is well known.  He's got a great documented record for the last 20  years, but I can attest his portfolio really stinks when you look at it  in the most recent 2 or 3 year window. <\/span><\/p>\n<p><span style=\"font-family: Verdana; color: #0000ff; font-size: medium;\">CROX was one of his darling stocks and he correctly identified it as a  buy a while ago.  At one point we saw 200% gains in the stock, but he  did not advise us to sell it.  One of his reasons was for keeping it was  \"low P\/E, and superior fundamentals\" and also he doesn't want us to have  to take short-term capital gains tax.  We are now in a 60% loss.  I  joined MarketClub and now use both the newsletter and MarketClub's  \"Trade Triangles\" to filter my trades.  I wish I had been a MarketClub  subscriber back in November so I could have sold this pig CROX.  I'd  much rather pay 35% short-term capital gains tax on a 200% or even a  100% gain than take a loss!!<\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\">You can read <a href=\"http:\/\/club.ino.com\/trading\/2008\/04\/16\/i-love-their-product-but-i-wouldnt-buy-their-stock\/#comments\">this gentleman\u2019s comment here.<\/a> <\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\">This is what I have to say about taxes. Like everyone else I hate paying  taxes, but I would rather pay taxes on profits, than pay the market with  a big loss. <\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\">Okay, let\u2019s move on and away from taxes. <\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/uploads\/Image\/dartboard.jpg\" alt=\"\" width=\"483\" height=\"308\" align=\"left\" \/>Getting the trend right is what\u2019s important in trading. We've said this  many times before that they don't ring a bell at the top or bottom of  the market. Often times the fundamentals look the most bullish at the  top and the most bearish at the bottom market.  When a market pulls  back, fundamentalists see this as another great buying opportunity and  sometimes they are right. However, some of these buying opportunities  can turn into disasters when a market makes a major turn. Witness the  disasters in Enron, WorldCom, Crocs and a host of other companies that  basically turned south and cost investors billions. <\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\">When you look at the markets through technical eyes, you can quickly  spot changes in direction that aren't obvious in fundamental terms.  Fundamentalists, much to the detriment of the general public, tend to  get married to their analysis and positions and feel obligated to defend  their viewpoint at all costs. That\u2019s what happened in the case above.  The newsletter writer could not admit to himself that the market had  changed and was going down. <\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\">Only when you approach the market with a technical, market proven game  plan are you<\/span><span style=\"font-family: Verdana; font-size: medium;\"><a href=\"http:\/\/broadcast.ino.com\/education\/croxcrash\/\"><img loading=\"lazy\" decoding=\"async\" src=\"..\/..\/..\/..\/..\/..\/uploads\/Image\/Video%20Reel.gif\" alt=\"\" hspace=\"10\" width=\"39\" height=\"46\" align=\"right\" \/><\/a><\/span><span style=\"font-family: Verdana; font-size: medium;\"> going to be successful. If you haven't watched the <a href=\"http:\/\/broadcast.ino.com\/education\/croxcrash\/\">Crocs  (CROX)<\/a> video yet, make that your first goal today. You can watch the  <a href=\"http:\/\/broadcast.ino.com\/education\/croxcrash\/\">video on Crocs (CROX)<\/a> here. <\/span><\/p>\n<p><span style=\"font-family: Verdana; font-size: medium;\"><a href=\"http:\/\/broadcast.ino.com\/education\/q1_2008_results\/\"><img loading=\"lazy\" decoding=\"async\" src=\"\/uploads\/Image\/Video%20Reel.gif\" alt=\"\" hspace=\"10\" width=\"39\" height=\"46\" align=\"left\" \/><\/a> I also recommend that you take a look at <a href=\"http:\/\/broadcast.ino.com\/education\/q1_2008_results\/\">our Q1 results<\/a><\/span><span style=\"font-size: medium;\"> <\/span><span style=\"font-family: Verdana; font-size: medium;\">which proved to be very successful. The results reflect a disciplined, diversified and filtered technical approached to the markets. This same approach can be used in stocks, futures, foreign exchange, and precious metals. <\/span><\/p>\n<p><span style=\"font-size: medium;\">There are going to be many good trading opportunities this year. I would  go so far to say that there will be many great trading opportunities  this year.  I hope you enjoy both videos and learn that you cannot rely on the  fundamentals alone to get you out of the market. Only the technicals can  help you time your exit from a position in the market. <\/span><\/p>\n<p><span style=\"font-size: medium;\">Every success in life and in trading,<br \/>\n<img loading=\"lazy\" decoding=\"async\" src=\"\/uploads\/Image\/adamnew.jpg\" alt=\"\" width=\"100\" height=\"76\" \/><br \/>\nAdam Hewison,<br \/>\nCo-founder <a href=\"http:\/\/MarketClub.com\">MarketClub.com<\/a><\/span><\/p>\n<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Let me start by saying that the fundamentals are very important. Without fundamentals the markets would not move, they would just stay flat and that\u2019s no fun. Fundamentals drive the market and that\u2019s true today just as it was true when trading first began. So what about the technicals, should we just push them aside [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-396","post","type-post","status-publish","format-standard","hentry","category-trading-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fundamentals vs technicals, which approach is right for you? - INO.com Trader&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ino.com\/blog\/2008\/04\/fundamentals-vs-technicals-which-approach-is-right-for-you\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fundamentals vs technicals, which approach is right for you? - INO.com Trader&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"Let me start by saying that the fundamentals are very important. Without fundamentals the markets would not move, they would just stay flat and that\u2019s no fun. Fundamentals drive the market and that\u2019s true today just as it was true when trading first began. 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