new traders forum needs experienced assistance, page-9

Of course there are those of us who believe that fundamentals have (almost) nothing to do with the day to day activities of the market, which is simply a place where the big sharks push the price of equities around at will, in order to create an environment where they can feed off the smaller fry.

I give you Karoon as an example. How can something be fundamentally valued at 50% of last weeks 'fundamental' price.

How can we have a technical target work on anything, particularly technical targets which get hit to the cent time after time, if the market is "driven" by fundamentals.

Much better to teach them the truth, that the market is a killing ground, and unless you are prepared to learn the technical aspects, you need to learn to keep your head down with the buy and hold method. That is where fundamental analysis comes in. Of course, if your fundamental analysis is wrong, you will not know until well and truly too late.

Not saying that funnymental analysis is without it's uses, particularly if you are analysing a long term investment choice. What I am saying is that the daily market dynamics are primarily technical, and 99.8% of newbies come here worried about their position because nobody told them that there was a technical side to the market. Imagine their surprise when they discover bot trading and try to rationalise that with the funnymentals of some equity.