fundamentals and trading

dear lakshmi / raju

ur opinions are welcome.

but i am of the opinion that one should never trade on the basis of fundamentals. 

a fundamental(ist!!!) trader is always proven right just after he goes broke.

there is generally a phase difference between the fundamentals and the actual movement. markets are known to sink much before the actual collapse, and known to rise much before actual recovery.

....trading is a cat and mouse game. in this tom and jerry one sided chase, cat (operators) is 1% size and 99% power, while the mouse (retail traders) is 99% size and 1% (money) power.

while trading on the basis of fundamentals is a disastrous idea in my opinion, i go to the extent of saying that technicals are quite risky too. operators know what u r looking at before trading. their trap is designed exactly on the basis of that. i have explained this in my numerous articles. 

operators have to be in the minority. they have to make sure that they catch the majority on the wrong foot all of the time. that is how they make money. they will use every trick to make sure that only the fittest and the most adamant are left on their side of the trade. 

i am often surprised, if not shocked to hear traders talk fundamentals and.....trade!!! 

well, investors should think and talk fundamentals, not traders. 

"technicals know that the news is coming".....as they say. though not fully, i do believe quite a lot that all fundamentals have built-in technicals.

the exact equation is

fundamentals + tactics = technicals

by the above definition, technicals are not exactly fundamentals. they are loaded with tactics to dress the fundamentals.

whats the idea of being proved right about "fundamentals" and lose all money by then?

never use fundamental or technical knowledge as excuses to reduce the pain of losing.....a veil to hide from the bitter truth!

agreed, that there is a possibility of markets crashing in a few days due to the macro economic factors u have mentioned, but is it wrong or illegal to profit from the bull dash till that time? should we play moral and avoid profiting from this up move just because it is illogical? why not eat while ice cream is being served and enjoy the coffee when its turn will come? won't mind shorting when market falls from the roof.

i'm sure there will be fundamental good news when market slips just to pacify and justify the
"overdue reasons" we are discussing now. a phase difference helps operators trap retail traders and be(belated) right, at the same time!

trading is not purely and totally logical.....it is a sophisticated gambling where ur gain is sombody's loss. it might sound painful but nice people are not known to be successful in trading unless they call the bluff of not-so-nice people who believe that "everything is fair in love and trading". trading is actually not trading. it is tricking! tricking by the cartel of the cattle!