How many people have bought a stock thinking there would be a big upside earnings surprise, which actually happens, but the stock price goes down on the news. Here is another, someone buys a stock thinking the company is ripe for a buyout, and it happens, but the buyout is for less than the current stock price. =====================
Ain't that the truth. So how one should play this market then? Just based on fundamental & ignore all the news, charts & signals?
This is where money management is applied. Keep the losses small, know your price target, and let your winners reach the target. As an example, say you have 3 losses where you're stopped out at a $1 loss. Then you had 3 wins where you made $3. You would be $6 ahead, and that's only being right 50% of the time. Simple huh? Right.....until you throw in greed and fear......it's harder than it seems.
Plannig the right entry and money management are keys.
"So how one should play this market then? Just based on fundamental & ignore all the news, charts & signals?"
I say stay invested with some cash available to take advantage of the dips. I am not saying to ignore anyghing, but also don't make big bets either, make minor adjustments according to what the news, charts, and fundamentals are saying. That has worked for me long term, not sure about day traders, that's not my thing.