Informed traders : how they make their Judgment ?
- Thread starter linkon7
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Now you are the one who is confusing
.What you are telling is not fundamental analysis rather it is Insidertrading.Fundamental analysis is done on past and present information only like earnings,pe ratio,balancesheet analysis,News etc
.What you are telling is not fundamental analysis rather it is Insidertrading.Fundamental analysis is done on past and present information only like earnings,pe ratio,balancesheet analysis,News etc
the point here is those who believe in the company and buy them when they feel the company will give reasonable returns and are trading at reasonable price to book ratios are fundamental investors / traders and they are the first ones to buy a stock. You'll recollect that reliance looked very ugly on the charts at 2500 levels and TA traders were looking for sub 900 levels at that time. It was the FA investors / traders who bought it at 1100 levels and TA traders jumped in when it broke away from 1400 levels.
My point is the candle sticks that make the reversal pattern are made by those who buy on fundamentals. those who buy after the reversal patterns are formed are the one who follow technicals.
My point is the candle sticks that make the reversal pattern are made by those who buy on fundamentals. those who buy after the reversal patterns are formed are the one who follow technicals.
Fundamentals say that it will take multi years for the American Economy to get out of the problem then who bought at 6500 levels?
some times simple logic works
my friend asked me to buy large amount of shares of gvk power and infra as he too was accumulating @ 19. I din't believe him
his logic was reliance will pump gas one day and gvk power's gas plants in andhra will definitely get a share and hence will get some profit even in margin (nafta to gas conversion) atleast for one quarter
his logic was write and gvk is swinging in 26- 29 sheer 33% profit
my friend asked me to buy large amount of shares of gvk power and infra as he too was accumulating @ 19. I din't believe him
his logic was reliance will pump gas one day and gvk power's gas plants in andhra will definitely get a share and hence will get some profit even in margin (nafta to gas conversion) atleast for one quarter
his logic was write and gvk is swinging in 26- 29 sheer 33% profit
what most people forget is that the charts are just reflection of what traders and investors of a stock think of the economy and how the stock will be affected by the economy. They key word here is think, and is not a reflection of the actual company's performance. Its just the emotions of a lot of people and not the company's P&L account.
When people are **** scared and are selling whatever they have, smart sharks buy and finally when the emotions turn around these sharks sell it back to the same people who are now more than happy to buy it at a much higher price.
e.g. RIL was a stock destined for 700-600 levels as per TA experts just 2 months back. the same experts are giving a projection of 2500-2800 now. exagerated emotions on both sides....
When people are **** scared and are selling whatever they have, smart sharks buy and finally when the emotions turn around these sharks sell it back to the same people who are now more than happy to buy it at a much higher price.
e.g. RIL was a stock destined for 700-600 levels as per TA experts just 2 months back. the same experts are giving a projection of 2500-2800 now. exagerated emotions on both sides....
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