Why do stock prices move 'incompatible' with their fundamentals?

 

You must have found a stock that has good fundamentals, the business continues to grow but why does the stock price keep dropping.
You must have also come across stocks that don't know what the product is, they have bad fundamentals, they always lose every year but the stock price is multibagger.

Why do you think it could be like that huh?
Let's look at the illustration below:

If we look at the illustration above, we will understand why stock prices don't move according to their fundamentals.
Remember, fundamentals always grow in a marathon, not a sprint. But stock prices sometimes move in a sprint, not a marathon.

You have to understand that the concept of stock price movements moves not only because of its fundamental aspects. But there are many other parties such as traders, speculators, investors, fund managers, and others. So it is very natural that stock prices will move very dynamically away from their fundamentals.

It's like a comparison of the price of chicken on weekdays and during Eid. When Idul Fitri arrives, the demand for chicken increases while chicken production is limited. So like it or not, prices will rise (this is the law of supply and demand in economic principles).

FUNDAMENTAL	TECHNICAL
Look at the company value	Look at company prices
Happy with the price down to accumulate	Happy with the price going up to do profit taking
Keep it for a very long time / forever	Follow the momentum

So from the table above you already understand the difference between the two right?
But these two methods also have in common, namely projection. Past data will not guarantee the future. This projection science is the most expensive knowledge of a trader or investor.

so if asked is it better to be a trader or an investor? Both are good as long as you use the right strategy. Don't even go back and forth.

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