There are a lot of arguments on whether Fundamental Analysis (FA) or Technical Analysis (TA) is the "correct" method to be used to make money in stock market. TA fans will claim that FA method is very risky and stock price movement is solely triggered by buy sell behavior which has nothing to do with the underlying business performance. FA fans will claim that it is impossible to predict near term price fluctuation, while using charts and indicators to make trade decision is nothing different from gambling.
This is just like in football world where some fans will fancy attacking football with silky skills and slick passing like Barcelona and Spain national team, while another side of fans would fancy football based on solid defense, shear discipline and strong physical like Chelsea and Germany football team.
In fact, regardless of FA or TA, it is proven there are people who had been very successful in stock market applying either FA or TA, or combining both. That say, we should not argue which method is better since both of them proved to work because it already tell us that as long as either TA or FA are executed intelligently you can make good money.
Back to sports, both attacking+skill and defensive+strength football teams had won major trophies and championships, and nowadays top football teams had evolved into an all rounded approach in emphasizing both offense and defense.
So the most important thing is to choose a method that suit you most or you are most comfortable with, and at the same time respect other methods that proved to work well.
No comments:
Post a Comment