Hanging onto a stock because your broker says “it’s a good value” doesn’t help when you’re losing money, right?
Look, much ink has been spilled lately about the stock market.
First, everyone was slapping themselves on the back about the market reaching 14,000. Almost immediately, folks were tripping over themselves trying to get out the door.
Once again, however, there are LOTS of “fundamental” folks telling you the market is a “great value” or “you need to look long term” or why buying stock in Coke is better than Pepsi, or owning GM instead of Ford.
That is what most people around the stock market actually DO. They analyze, and then tell you “stock A” is better to own than “stock B.” No matter what the market conditions are currently.
Most folks want to know if it’s safe to be in the market at all!
Which is why we focus on technical AND fundamental analysis. Technical work (charts) tell us WHEN to buy or sell. Fundamentals only tell us WHAT to buy.
The two biggest factors in determining whether you make money in the market is knowing whether the market is on offense or defense, and being in the right sectors.