Best Way to Invest in US Stocks | Technical Analysis | Fundamental Analysis
Carrie and
I really look at markets in two
different ways Carrie has moved towards
a
fundamentals analysis of a stock a
company he believes earnings per share
Revenue forward earnings projections
that kind of thing can really predict a
stock
price and to me there is a part of that
that is very
true then
there’s the other side of it and that’s
what I believe in I got into this
business 25 years ago became a financial
advisor and really gravitated to
technical analysis I believe markets are
dependent on Supply demand and that can
easily be seen through the technical
moves in a stock price commodity price
Futures I mean all Behavior you look at
your kids you look at your family
members and after a while you see
patterns in the behavior my wife knows
after 34 years how I react to certain
things how I react how I’m behaving she
knows when I’m not talking about
something that something is really
Weighing on my mind and when something
when I do talk about something and I’m
aggressive about it she knows that is
very important to me in it’s a
perplexing situation or I’m super
passionate and more most importantly
very much believe in what I’m saying
Carrie and I have that in common for
sure he and I just look at the world
differently I believe that if you see a
wave set you’ll see seven wave sets
before a cal and then the wave sets will
start again it’s a cycle of sevens
markets do the same thing today I did a
review on Riot platforms which is a
crypto mining company and I basically
said I don’t I’m not all in cuz it’s
scores a 6 out of 10 of my scoring
system which is all technical based and
one of the biggest reasons is is because
yesterday that was uh what is today the
24th so the 23rd of April Tuesday Riot
ran up to its 50 day simple moving
average we hit a high against it and
then closed below that down from that at
the end of the day what that tells me
just after 25 years of experience that
the market didn’t believe enough that
Riot could should go higher there was
not enough conviction there was not
enough volume there was n enough buyers
versus Sellers and so at the end of the
day it ran up hit against the 50 and
closed below its INF High along with a
number of other indicators that told me
that as we come up into earnings season
4 Riot which is in the next couple days
I think next week
maybe it’s not time to buy this and
that’s what I us human behavior and you
can see that through technicals the
problem with fundamentals in my opinion
is that there’s so many unknown
variables it’s a what it’s a if then
statement if this happens then this
happens well we already know for
instance apple is having a big challenge
with selling cell phones the iPhone in
China because wuwei has come out with a
newer and supposedly better product and
because it’s a Chinese
company it’s winning out over the iPhone
when the u Chinese government says you
can’t use an iPhone if you’re government
employee I mean that’s pretty much right
in the
sand remember China is one of the
biggest potential
economies in the
world India as well so we as US citizens
are tied on money our 90-day credit card
delinquency rates are through to the
roof we don’t have any money so from a
fundamental standpoint Apple’s earnings
going forward are going to get the rate
of change is going to get less and less
and less until it
declines they are from a fundamental
standpoint basing decision their their
their fundamental SI situation is
affected by so many other variables when
I look at it from a technical standpoint
it’s obvious it’s trending down it hit
it peak in February and it has trended
down
since as is has as has the
semiconductor a lot of semiconductor
companies like Nvidia smci they’re all
trending down I mean smci has been on a
6 we negative Trend yeah it’s bouncing
back from its Friday
selloff of uh what 20 some OD per holy
crap
right and it’s trending back higher it’s
it’s higher up yesterday it’s higher up
today uh most likely it’ll be up higher
today but chances are once it comes
against the 9 day simple moving average
it’s going to retreat it’s going to hit
a
wall and you can see that through the 10
different indicators that I use to make
these technical decisions it’s not
emotional it’s not ooh they could change
the world oh they could sell more
computers to uh all these data to and
and use more gpus from Nvidia no it’s it
is supply and demand and when there is
not enough Demand versus the supply what
happens you you stock by don’t go up
it’s really not that complicated yet
it’s so complicated and the biggest
complicated part of the whole thing
is your
emotions most investors most financial
advisors most people who are in this
game
are playing a if then statement they’re
playing that routine yeah well what if
you know this this $10 million house
behind me you know uh you know there
there’s a lot of money on the sidelines
that could come and buy that house well
if you’re a business owner who could
afford a $10 million house and your
business is basically screaming because
the cost of the money that you borrowed
over the last 3 years is going up and
you have to refund finance that debt
which I believe this quarter second
quarter there’s about $800 to $900
billion in commercial loans that have to
be
refinanced that they were borrowed at 2
3% through 3 years ago now they’re
having a refinancing at 5 6 7 8 in some
cases really high level risk assets are
in the double
digits you can’t buy a $10 million home
you
can’t it’s just not in the math and
that’s where I argue the fundamentals
are maybe at the most 20% of a
decision-making Pro part of the process
in this market the other 9 80 to 90% is
technical you think about the evolution
of highfrequency
trading what is it based on it’s based
on mathematical formulas Jim Simons of
the Renaissance fund he he’s a uh in the
60s he was a code breaker for the US
government he is a mathematician PhD
brilliant mathematics doesn’t wear socks
go check him out Jim Simon Renaissance
Fun he started their fund based on math
back in I believe
79 he is
the best
investor year after year after year in
returns than any
he trumps Warren Buffett which everybody
thinks he’s the best he’s a value
investor holds stuff because he thinks
out 100 years are you going to live
another 100 years he ba Jim Simons based
his fund on mathematics
probability you can’t argue with ones
and zeros it is what it is and when you
look at these markets you have have to
start thinking Supply demand take in
account money costs a lot inflation is
High I mean when you have a US dollar
that is basically worth 80 you know 70
to 80 cents on the
dollar um you know on average is
actually it’s not 780 cents I actually
did a video on uh two the two regular
guys show that I do with Mark yesterday
is actually worth the dollar US dollar
versus Euro doll is worth 93 so it’s 8
7% less than what you have in buying
power you couple that with true
inflation and if you use the calculation
of inflation based on what it was in the
70s inflation’s
18% add another 7% to that and well
you’re fighting uphill battle that means
the S&P just to outweigh the Deval ation
of the USR you have to minimum get
12% just to get
above and so if you’re not
using math and technical analysis to
make your investment decisions and I
think the the most
misunderstood thing about best of us
investors is that we’re day traders that
we’re swing Traders only I am a
long-term investor I’m not a swing
Trader for the most part I am a
long-term investor I’m looking out 10
years from now when I’m 65 years old and
I start a new chapter of my life and I
want options and so I’m looking out
longterm what is that behind me going to
do over a longer period of time over an
intermediate period of time which is 90
days or more not what’s happening this
week our swing traing program is second
to none it is spoton Mark is excellent
at it because that’s what he does all
day long that’s what his focus is that’s
where his mindset is that’s what his
background is what he does and that’s
why there’s a winning part of that but
the other elements of best of us
investors is thinking about you in the
long-term perspective of your
Investments and creating wealth in
fighting the
tsunami that potential could be behind
me and winning in that tsunami
so
wethink your thinking step back look at
on the horizon and ask yourself am I
going to achieve my goals following the
path that I’m presently following or do
I need to investigate do I need to be
curious about how my money is being
invested and managed and is there a
better way and how can I better myself
than I was
yesterday live loud peace we’ll talk to
you later
[Music]
I explain why I favor technical analysis over fundamentals. Technical analysis focuses on studying the supply and demand for a stock, which can be easily seen through charts of the price movements and trading volumes. I believe markets follow patterns and cycles that can be identified through technical indicators.
In contrast, fundamental analysis tries to predict a stock’s future price based on the company’s earnings, revenue projections, and other business metrics. However, I argue there are too many unknown variables that can impact those fundamentals in unpredictable ways.
Using examples like Apple, Nvidia, AMD, and the current macroeconomic environment, I make the case that technical analysis provides a more reliable approach to investing for the long-term. I’m not a day trader – my strategies are focused on building wealth over years and decades.
The video covers key technical indicators I use, the importance of controlling emotions when investing, and how even the best fundamental investors like Warren Buffett can be beaten by a pure mathematics-based approach like Jim Simons’ Renaissance fund.
Let me know in the comments if you agree that technicals should take precedence over fundamentals, or if you have a different investing philosophy. Don’t forget to subscribe for more investing analysis from Best of US Investors!
#technicalanalysis #FundamentalAnalysis #StockTrading #InvestingStrategy #ChartAnalysis
#SupplyAndDemand #TradingPsychology #LongTermInvesting #WealthBuilding
#MacroEconomics #EarningsReports #Indicators #MovingAverages
#FinancialEducation #InvestingTips #StockMarketAnalysis
#ValueInvesting #QuantitativeInvesting #RenaissanceFund #JimSimons
#ControllingEmotions #PatternRecognition #TradingCycles#investing #stocks #stockmarket #Investingforbeginners #artificialintelligence
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3 Comments
Tarot might be another tool alongside fundamental analysis and technical trading. It really doesn't matter, as long as it's consistently applied over time. Eventually… (emphasis inserted here) any strategy will succeed.
Thanks for these type of videos
When Crisper bottoms in the ranges of 35 – 45 the small caps in that area could bottom and it looks like serious gains if you can time the bottom of these smaller ones like verve, caribou, etc. start breaking that 10 day watch out could be massive upside