Fundamentals for Intraday Traders

Understanding of fundamentals cannot be brushed aside for intraday traders. This came to the forefront in the ABAN trading.

1. My colleagues at TCSS used to have an excellent handle on fundamentals. When he prepares a spreadsheet the numbers used to be at his command. That fundamental handle of working out the value of the company from basics gives the trader an edge in designing the trade.
2. In the ABAN situation, first there is a rerating of the scripand there is a valuation surprise in the analysts estimates of rig rentals. This may not be adequately appreciated by a retail trader .
3. Another microstructure factor of ABAN fresh positions banned in F&O led to short squeeze.
4. Thistaught me the importance of market design issues and keeping multiple time frame participants actions in mind .