Stock price and nothing else

“One thing I have learned over time is the best thing to do is let market price action guide your decision-making and then try to understand the fundamentals as they become more evident and comprehensible.”
Paul Tudor Jones (May 2020)

Kaupleja Markus
Tallinn Old Town, Estonia

I’m a technical trader. My decision to buy or sell a financial asset relies on price action and nothing else. I don’t need fundamentals, news, opinions. It often feels like more information is better because it can increase our odds of being right. More information creates more randomness and we can never know everything about the future of a stock. Why? Because the future is constantly being created at the very moment and there’s no way anyone can know what will happen. Therefore, the best thing I can do is to systematically keep putting the odds in my favor based on the current price action and let the market play it out. I “read” news, opinions and fundamentals all from price charts. It doesn’t matter what the press release of a company was, it’s more important how the stock price reacted to it. After all, my goal as a trader is to benefit from the price change, so why would I use any other input in my analysis than price itself?! Stock price and nothing else.

To my Estonian readers, my article about the top 8 common trading mistakes was recently published in the local news portal Äripäev:

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