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In most cases, being too early is the same as being wrong.
This is exactly why combining the chart with fundamentals is the holy grail.
Buying purely on fundamentals can lead you into a stock that's in a downtrend or stuck in a range ~ dead money. You're sacrificing missing momentum and paying an opportunity cost on trapped capital.
Buying purely on chart patterns leads to trading lower quality stocks with no real edge. You can find "good looking charts" all day, but if there's no reason for the stock to go up, what's the point?
The goal is identifying strong market leaders and using the chart to time your entry.
Stock > Setup
Whether that's buying off a major support zone, a breakout, a stage 1 base retest...etc there are many ways to skin the cat.
I never buy solely on fundamentals. I never buy solely on the chart.
The two go hand in hand. Stack conviction on both and your odds of success go up dramatically.
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