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Dima

Do you let fundamentals influence your trading?

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In Andrew's book, he talks about looking at finviz every morning to get some understanding around why a stock has gapped up/down (though he doesn't seem to do this during the morning watchlist build in the chatroom). Do you guys let those reasons influence how you trade a stock that day, or do you intentionally shut out news like that and focus strictly on technical analysis? As an example, if a stock is up big on great earnings, are you apprehensive about going short on a stock if it falls below VWAP?

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Dima, we should never have such a bias at the beginning of a trading session as a day trader. Market can go either way, we should wait for the confirmation of the trend to make proper decision. If you go through a lot of trades, you can see that some stocks drop below VWAP but then jump back up immediately, OR stay just below VWAP for a while as a consolidation, then suddenly pop up. We need to see how the market goes and follow it.

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Good question. I was curious about this too Dima. I think that the brief fundamental knowledge is useful for confirming the activity in the scanner—to understand WHY that stock hit the scanner. After the market opens, it’s all technical.

 

That’s my understanding.

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I felt the same way. Many times Andrew follows the current market direction than the Fundamentals. I am saying this coz i heard him saying what is the news on this today? Also remembered shorting UAA while it had better earning report and went up the day. The secret that i found in him is HE IS ALWAYS GREEN! . I followed him sometimes but that didn't work for me. Anyway, I am trying to follow market trend that particular time.

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