Don't trust stock charts alone

12 февр. 2023 г.

Valuation change my life. I was blind and now I see. not kidding.

I love technical analysis. I love it more when combined with valuation.

Stocks are actual businesses. Charts only track transactions. its like receipts in the trash outside the store :D

Warren Buffett used to collect bottle caps as a kid. Then would sort them to find out what drinks were most popular. He sold Coca Colas from his grandfathers grocery store based on this info and also later in life became a Coke Stock investor.

so what?

Maybe not you, but definitely me, Ive made the mistake of JUST LOOKING AT CHARTS and forgetting whats behind the charts. Actual businesses, people, and world governments acting out their motivations, resulting in what we see in the charts.

There is so much more information, that when combined with charts, makes for better decisions.

Shout out to trading view. Trading view allows for make fundamental data easy to overlay onto charts. gamechanger!

Macro/fed, accounting fundamentals, charts/trends, social sentiment/behavior, options pricing, all of this and more is out there for investors to consider.

Any who.
The video is about the market multiple on earnings which results in prices. Thats what prices are. Prices are a derivative on business earnings. Earning x multiple = price.

When I was noob young monkey, I wish I knew all of these concepts. So here I am trying to share.
Hope you dig it.

Cheers!