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Which is best Fundamentals or T.A.?
We all know Warren Buffet (the king of the stock market) is a fundamentals investor and he's made a ton of money. But yet despite the fact that all the people who have seemed to make a REAL great deal of money are fundamentalists there's still many many T.A.'s out there. What's the deal? Is there something that I'm missing here?
I say a healthy balance of both spells a healthy investing future.
I do not entirely believe Warren Buffet depend entirely on fundamentals. As one poster said which I agree, a healthy balance between fundamentals and technicals is recommended.
Even though technicals as the word suggest is hard to understand for common people, it might be why Warren buffet conveys his investment knowledge in stocks in terms of fundamentals which normal people could relate.
I think they are both important and I never enter a trade with out consulting both.
I think valuation is crucial and above all else is NEWSSSSSSSSS!!!
NEWS DRIVES THIS MARKET NOT TECHNICALS...IMO
I'll agree with the others, the correct answer is both.
Both can be exceedingly complex if taken to extreme. However, both are surprisingly easy if you just start with the first few basic concepts and learn those well.
For TA, start with support, resistance, and moving averages. From there, graduate to Stochastics, MACD, RSI, and patterns. That's really enough for almost everyone.
For FA, start with the basic formula for earnings: Sales-Cost of Sales =Gross Profit -Expense- Taxes = Net Income. Beyond that are all of the various permutations and exceptions of the above and the explanation of why each number is what it is.
If you can understand the basics of each, you will be miles ahead of most amateur investors.
