[stinkypete]

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great post david. it actually makes me hate the idea of trading equities a whole lot less.

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to expand on this:

i've always felt that the "fundamental analysis" that is taught in books and stuff is a crock because when i find a stock that seems to be mispriced significantly, i'm always going to wonder if that's because there's someone that knows something that i don't. but for some reason i've never considered that trading in the opposite direction of what FA suggests might be a good strategy...

but really, good traders must know about this (whether they fully understand it or not), and taking advantage of it isn't likely to be easy.

i'd imagine this would work best in stocks that the stupid general public have a lot of interest in, and everyone thinks they're experts in (GOOG for example). the challenge of course is figuring out how the stupid public prices those stocks. maybe this is where TA becomes useful...

but i guess you can argue in circles why this should/shouldn't work, and its a stupid argument where performance would speak for itself, just like the whole FA vs TA argument.