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!

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    3 Comments

    1. 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.

    2. 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

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