I’ll honestly say that fundamental news is NOISE to your trading.
I’m sure you’ve seen the market rallies on bad news and collapse on good news. And you’re probably wondering:
“What the heck is happening?”
Well, I’ve no idea too.
The only thing I know is… Price is KING.
This means you don’t know anything about fundamentals like the price to book value, financial ratios, interest rates, GDP, assets, liabilities, and etc.
And… you still can be a consistently profitable trader — if you follow price.
Here’s the proof:
AMD had 3 years of negative earnings but the stock rallied 700% in 12 months. If you shorted AMD based on fundamentals, it would really hurt.
But what if you followed price?
You would have made a profit by being on the RIGHT side of the market.
Or how about the US Presidential election?
If you recall:
The news and media were extremely bearish if Donald Trump gets elected as president because of his policies, his character, the Trans-Pacific Partnership (TPP), and etc.
But look what happened…
The S&P 500 broke to all-time highs.
If you shorted this market based on the media and analyst reports, then you’re probably toasted.
So my point is this…
The market doesn’t care about you, me, fundamental reports, news, media, analysts, and etc.
The only thing that matters is, PRICE.