Me thinks there are 3 aspects to investing, fundamentals, technicals and the markets.
I must admit, I have to agree with slick on this one...
Im a huge fan of both fundamentals and technicals lining up, makes for a safer investment.
However sometimes Markets can be crazy, emotional, triggered by factors out of any ones control..
Look at the GFC, that was sheer madness... many of the technicals for a majority of companies literally had no guidance, literally like trying to catch a falling knife at times.. Fundamental's were still strong for some companies, yet it didn't matter, the markets were over emotional, money was just leaving the building... took over 4 years just for the markets to get back on track... investors became way sceptical and emotional after the GFC..
Look at what we went through with Covid, another falling knife moment that IMO created mass bargain basement prices, Fundamentals were getting smashed as well due to workers being in lockdowns etc, TA had no guidance at all, was just carnage... Markets way over reacted... look at the likes of PLS, hit 15cents from memory, only to hit $5 just over 2 years when the pandemic was truly subsiding and the world got back to some sort of norm... Markets were way over emotional..
IMO Markets are still very emotional at present... profit taking now is harder and faster, I think we are experiencing that currently with IMU...
A lot of talk that 2024 is going to have another serious correction due to the hyper inflation, cost of living is affecting many, banks are being some what ruthless... IMO it could well happen... but if it happens TA will have some initial guide at first, Fundamental's will get thrown out the door, but where the bottom will hit no one knows... Markets be crazy at times... sure they maybe some reasoning behind it, but it is frustrating when you look at a company and the Fundamentals are really strong, the Technicals are all on track, then out of the blue some crazy bears with massive claws and teeth just start tearing share prices down ... DOW is one that annoys me, here's us the ASX, our own listed companies that usually have nothing to do with America, yet if the DOW is down 400points, the ASX 99% of the time will fall the next day, that's markets for you..
I think we live in a time where traders, investors and alike are very sceptical today... Trust has gone in todays world.. hence why I trade the way I do, I prefer short term profits, lock it in.... Greed is not our friend...
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