Fundamental investors should have a firm position in the marketplace.... they should know if they are a bear or a bull. Fundamental investors will normally keep the same position for many years. Traders on the other hand can switch positions many times in a day.
When the market is volatile, fundamental investors like me will keep a close eye on the markets. We are watching for signs in the marketplace that may make us change our mind on our market position. For me, if the market continues to break all its major support levels, I will reassess my position on the market.
One must remember that the market is always right. It is we, who can be wrong. If we are wrong in our position, there is no glory is standing firm to a position and continue to lose money to Mr Market. It is our responsibility to reassess what Mr Market is telling us and to respond accordingly.
Having a position in the market will help me decide whether I continue to buy more stocks or to sell into any strength. If I do not have a position, I would not know what to do especially when the market is volatile. Hence, it is important for fundamental investors to continuously reassess their position especially during volatile sessions when the markets can go up or down 5% every other day.
Though I do not trade the market, I still use basic technical analysis charting to help me determine the major support and resistance levels. I feel that all fundamental investors should know some basic technical analysis as it does help us in our buying and selling decisions.
As for now, I remain a bull and will continue buying slowly.