It's a bull market. Everything works.
But what happens when the bears visit town?
Many traders and investors would find their methodologies tested
during this phase. It's a time where you find out what works best
and what doesn't.
I've heard countless stories of people and their experiences. How
they gained big or small but lost more. I would find their system
and approach good. Be it a fundamental or technical approach, it
would usually be a system that is well toiled and thought of.
So what went wrong?
The most important thing people forget when treading and trading
the markets is the mindset. A system based on fundamentals or
technicals in its purest form is just sets of "if, then, else"
IF A breaks-out of 10, Then Buy at 10.01-10.1 ;
IF B is [insert fundamentally sound principle], Then Hold/Buy ;
else, avoid ;
But why is it so hard to act on it?
Because numbers are constant. Your emotions are not.
And while some people would argue that you can mix both
fundamentals and technicals, I believe you just can't.
Either of the two works, that is... if you use the right approach.
And No. you can't choose Ereudite.