If, you bought a share at $1 three years ago. Now you sell it at $6, four months later stock market crashed. The share drops to $2 one year later, and you start to collect again. This is BUY LOW, SELL HIGH. Sounds very simple to make good money.
This is assuming that you had done a thorough fact driven analysis and made an informed decision.
Sounds simple, but it is quite difficult, here's why.
When you bought at $1, it must be a very bad market. After you bought it might fluctuate, may be to the low of $0.70 within 3-4 months which is a 30% paper loss. There are a lot of bad news around. Your friends might ridicule and taunt you for buying it at such a market. To justify you made a wrong move, there will be a lot of conventional wisdom driven theories like "The Worst has yet to come" "Don't catch the falling knife" "We are still not seeing the end yet". If you are buying a plantation stock, theories to justify your foolishness might be "The palm oil price is too low""Demand for palm oil is weak now""Soil bean oil is a great threat to palm oil". When it drops further to $0.70. It further proved you are wrong. Although eventually it is a great investment, but within this 4 months you have to see price fluctuation, negative news, and taunts from your friends. Do you have a big strong heart to hold on to your fact based study??? 4 months is not that short, can you stand it?
Same thing, when you sell it at $6. It must be a great bull market. Your study shows it is overvalued and the market is on the verge of huge correction. After you sold it, it might continue to go up to $7 in 4 months. Again, you will be flooded with good news from the media, and again taunting from your friends for selling so early to miss the boat of such great opportunity. Common theories to prove you wrong are like "We are in a very strong economy" "The bull is running with unstoppable momentum" "Demand for palm oil is ever growing" "It's different this time, there is strong demand from Asia". Again you will be laughed around for 4 months, there's a possibility you will live with regret. So again a big strong heart is needed.
Just look at some famous examples of Warren Buffet (WB).
During the dot com bubble early 2000, WB stayed at the sideline due to reasons that most of the tech stocks are horribly overvalued and their business are "difficult" to understand. As a result, he is heavily taunted by the public for being missed out this time. When the bubble bursts, everyone burnt, but WB's portfolio still grows steadily as ever. People might find ways to criticized him for missing out the chance to enter and "goreng" to enjoy the sudden Windfall profit, but actually it's those people who suffer the Windfall loss ultimately.
Another more recent example, PetroChina. WB started to buy it in 2002. Total initial investment $500 million. He sold all his stakes in 2007, with a total profit of $3.5 billion, solely because it is overvalued. It was the time where we talked about how strong China would be and how it would rule the world. After the sale, PetroChina continue to rise and made another all time high, where people estimated WB had missed out another few billions profit for selling early. Again, WB was being laughed at for making a poor investment decision (although he made $3.5 billion profit). Everyone what happened then. PetroChina crashed and goes back to where it was.
That is why, during bull market, it is easier for analyst and stock gurus to shout for buy call with reasoning of strong bullish momentum, and call to BUY HIGH, SELL HIGHER. You will be under a lot of pressure if you made anti climax caution statement to warn people of high valuation.
For retail investors, buy during bull market is much much more comfortable. At least you can see your shares stay there, or goes up a while (a few months or may be 1 year) to make you feel safe. At least you are making same move as everybody around you, no body will laugh at you, and you feel good.
So it is more comfortable to feel good and die later, rather than undergo big pressure to earn big bugs later. This explains why theory of BUY HIGH SELL HIGHER is well accepted.
For smart investors who wants to BUY LOW SELL HIGH:
Do your homework, make your smart moves QUIETLY, avoid sharing with others. Then highly likely you will enjoy earning big bugs, while staying away from noise and rubbish talks.
Thursday, 20 September 2012
Friday, 14 September 2012
Stocks to buy and hold for life time!!
I just recalled a few months ago a friend eagerly asking me to recommend a stock that she can buy now and hold forever for 40-50 years.
Of course my answer is I DON'T KNOW. Its not that I don't want to share, indeed I am very honest to her. I really don't know. Besides I also don't really understand her question and don't know what she wants. To help her to make the question more specific, I assume she is targeting to invest 1 million today, every year it will pay out dividend of 200k at least, and 30 years later the 1 million will turn into 100 million. This should be ideal enough.
We are too used to hear of classic examples of stocks that can hold forever, where it turned 10k investment 40 years ago to 1 million today (includes reinvesting all dividends and bonus shares) for instance Coca Cola, Gillette (P&G), Wal-Mart, American Express, Public Bank, Maybank, Genting...Those are such an inspiring story, no wonder people are so keen to find the next Coca Cola.
As a matter fact, how many investors who invested in those shares 40 years ago already expected this kind of return after 40 years? Besides Prophet, I wonder any human being can predict what will happen after 40 years.
In real world, a practical long term fundamental investing style should be identifying companies with great potential, invest only at good bargain, continue to monitor the progress of the business, to see if it continues on the right track, or something has structurally changed.
I felt sorry for my friend for not being able to give her a direct answer as I am not a Prophet.
Everybody likes to have money coming in easy. No need to think, no need to work, no need to bother, just tell me the answer will do (will people tell you the true answer?), I just want money to come in easy will do. Everybody DREAMED of this, and HOPE it happen in real life. The culture is so common in this country.
When HOPE and GREED are mismanaged in stock market, it's time for disaster.
Of course my answer is I DON'T KNOW. Its not that I don't want to share, indeed I am very honest to her. I really don't know. Besides I also don't really understand her question and don't know what she wants. To help her to make the question more specific, I assume she is targeting to invest 1 million today, every year it will pay out dividend of 200k at least, and 30 years later the 1 million will turn into 100 million. This should be ideal enough.
We are too used to hear of classic examples of stocks that can hold forever, where it turned 10k investment 40 years ago to 1 million today (includes reinvesting all dividends and bonus shares) for instance Coca Cola, Gillette (P&G), Wal-Mart, American Express, Public Bank, Maybank, Genting...Those are such an inspiring story, no wonder people are so keen to find the next Coca Cola.
As a matter fact, how many investors who invested in those shares 40 years ago already expected this kind of return after 40 years? Besides Prophet, I wonder any human being can predict what will happen after 40 years.
In real world, a practical long term fundamental investing style should be identifying companies with great potential, invest only at good bargain, continue to monitor the progress of the business, to see if it continues on the right track, or something has structurally changed.
I felt sorry for my friend for not being able to give her a direct answer as I am not a Prophet.
Everybody likes to have money coming in easy. No need to think, no need to work, no need to bother, just tell me the answer will do (will people tell you the true answer?), I just want money to come in easy will do. Everybody DREAMED of this, and HOPE it happen in real life. The culture is so common in this country.
When HOPE and GREED are mismanaged in stock market, it's time for disaster.
Saturday, 8 September 2012
KLCI: WE WANT TO FEEL GOOD
KLCI has hit historical high of 1660+ lately, and corrected "sharply" last Wednesday and Thursday which creates quite a lot of talking points among local retail investors. The "sharp" correction is merely ~-2%. A 2-3% fluctuation is very common to be seen in Hong Kong, Japan, US...
Among opinions from local retail investors, I can conclude that most defend this correction as a healthy correction and their views remain bullish, as this is a good opportunity to enter for upcoming bull run. Minority have bearish view. In fact KLCI is among the best performers in the world this year. Within my knowledge, I can recall that lately only Malaysia and Indonesia had hit historical high, while the rest of market I know i.e. US, Japan, Hong Kong, Singapore, Korea, Taiwan...still have a long way to go to reach teh high before 2008 financial crisis. Not to mention China, the nation with the "strongest performing economy" , the Shanghai Index still hover around 2000, where the highest in 2007 was 6000 plus! This perfectly matches our proud and popular quote of "MALAYSIA BOLEH". Congratulations!
KLCI had been inching up as if there is an unseen propeller underneath. We are too used to see it goes up and appear to be so surprise to see the "2% correction". We are anticipating good news after good news to be published by the government to help propel the uptrend, so far it never fail us. We have been given different assurance with various good news to tell us that our economy is strong and able to withstand any storm. As a preparation of a very important event ahead for all Malaysians, cash after cash has been distributed directly to people (certain), and may be indirectly through the stock market. That is supposed to be an event where people must FEEL GOOD, certainly an up trending stock market will help. It makes me feel like engineering the KLCI to go up is an mission which cannot fail.
Externally, we also like to hear good news of how the developed countries come out with measures to stimulate the economy. Ever since 2008 financial crisis, we had heard countless massive stimulation measures especially in developed countries, of course in different names and terms. Stimulation, Quantitative Easing 1,2,3,4,5....It started in US, then EU, then now in China we are also anticipating eagerly for Mr Wen to announce stimulation plan to stimulate our sentiment. Every time a stimulation measure announced, as usual investors will anticipate eagerly, when it is confirmed, investors become so positive and it reflects in the stock market with a rally, a short term one at least, before we anticipate another round of stimulation.
The logic here is as if we need to survive by depending on the government to keep on printing billions of dollars and inject into the market to make us strong and happy. It is said to encourage increase in consumption hence revive economy activities. I hope this will make us good. This resembles an athlete who keep on injecting steroid to himself whenever he feels tired. Just imagine what will happen to the athlete if this keeps on repeating.
The measure of injecting money into the market to save the economy sounds very simple, and I sincerely hope it works by making our lives better. I am still figuring out whether this measure can bring good changes like making the lazy ones become hardworking, corrupted ones become honest, stupid ones become smart, wasteful ones become thrifty, inefficient ones become efficient, rude ones become polite, inconsiderate ones become civilized, criminals become good citizen.
Back to KLCI, facts we can observe lately
1. It is not cheap, especially blue chips. The most straight forward valuation, P/E ratio is not low, especially compare to regional peers
2. Along the year, most blue chips are in side way movement
3. KLCI has doubled since 2009.
4. The most active stocks for 2012 are penny stocks. If you go to the market, the daily top active list consists of penny stocks
5. Highest gain (of course loss) are penny stocks. The "GORENG" interest is strong.
If we hope it keep on go up go up go up as we wish, we need a real crazy bull to come, where the crazy bull can push the stocks to very high valuation, in another words, very expensive.
Any way, we are human, we always like to feel good, at least for a short while.
Among opinions from local retail investors, I can conclude that most defend this correction as a healthy correction and their views remain bullish, as this is a good opportunity to enter for upcoming bull run. Minority have bearish view. In fact KLCI is among the best performers in the world this year. Within my knowledge, I can recall that lately only Malaysia and Indonesia had hit historical high, while the rest of market I know i.e. US, Japan, Hong Kong, Singapore, Korea, Taiwan...still have a long way to go to reach teh high before 2008 financial crisis. Not to mention China, the nation with the "strongest performing economy" , the Shanghai Index still hover around 2000, where the highest in 2007 was 6000 plus! This perfectly matches our proud and popular quote of "MALAYSIA BOLEH". Congratulations!
KLCI had been inching up as if there is an unseen propeller underneath. We are too used to see it goes up and appear to be so surprise to see the "2% correction". We are anticipating good news after good news to be published by the government to help propel the uptrend, so far it never fail us. We have been given different assurance with various good news to tell us that our economy is strong and able to withstand any storm. As a preparation of a very important event ahead for all Malaysians, cash after cash has been distributed directly to people (certain), and may be indirectly through the stock market. That is supposed to be an event where people must FEEL GOOD, certainly an up trending stock market will help. It makes me feel like engineering the KLCI to go up is an mission which cannot fail.
Externally, we also like to hear good news of how the developed countries come out with measures to stimulate the economy. Ever since 2008 financial crisis, we had heard countless massive stimulation measures especially in developed countries, of course in different names and terms. Stimulation, Quantitative Easing 1,2,3,4,5....It started in US, then EU, then now in China we are also anticipating eagerly for Mr Wen to announce stimulation plan to stimulate our sentiment. Every time a stimulation measure announced, as usual investors will anticipate eagerly, when it is confirmed, investors become so positive and it reflects in the stock market with a rally, a short term one at least, before we anticipate another round of stimulation.
The logic here is as if we need to survive by depending on the government to keep on printing billions of dollars and inject into the market to make us strong and happy. It is said to encourage increase in consumption hence revive economy activities. I hope this will make us good. This resembles an athlete who keep on injecting steroid to himself whenever he feels tired. Just imagine what will happen to the athlete if this keeps on repeating.
The measure of injecting money into the market to save the economy sounds very simple, and I sincerely hope it works by making our lives better. I am still figuring out whether this measure can bring good changes like making the lazy ones become hardworking, corrupted ones become honest, stupid ones become smart, wasteful ones become thrifty, inefficient ones become efficient, rude ones become polite, inconsiderate ones become civilized, criminals become good citizen.
Back to KLCI, facts we can observe lately
1. It is not cheap, especially blue chips. The most straight forward valuation, P/E ratio is not low, especially compare to regional peers
2. Along the year, most blue chips are in side way movement
3. KLCI has doubled since 2009.
4. The most active stocks for 2012 are penny stocks. If you go to the market, the daily top active list consists of penny stocks
5. Highest gain (of course loss) are penny stocks. The "GORENG" interest is strong.
If we hope it keep on go up go up go up as we wish, we need a real crazy bull to come, where the crazy bull can push the stocks to very high valuation, in another words, very expensive.
Any way, we are human, we always like to feel good, at least for a short while.
Thursday, 6 September 2012
Contrarian behaviour of KLCI
This is about how KLCI behaved, especially in year 2012. In simple words, it is a "contrarian" relative to regional markets.
Everyday at 5.30pm, you open up any finance website with a list of Asia stock market indices, you will find out:
1. If all markets are very GREEN, KLCI will be a little GREEN (0.1 to 0.2% will do)
2. If all markets are very RED, KLCI will also be a little GREEN, or occasionally a little RED (0.1 to 0.2% will do)
In general, it inches up a little by a little, regardless of what happened outside Malaysia, this is as if it is supported by an UNSEEN FORCE UNDERNEATH (what is that actually???). This matches the popular theory of Malaysia's economy and stock market are immune to external factors as we have strong internal play.
This is an interesting phenomenon to watch. Undeniably, Malaysia stock market is much less volatile compare to other regional bourses such as Hong Kong, Japan and Singapore which can easily fluctuate 1 to 2% daily. Malaysia market typically fluctuate less than 0.5% daily, and it doesn't allow shorting. It is very unusual to see more than 1% daily fluctuation.
This has to link with my previous post of "Missed the boat, Chase the boat, or Leave the boat" which mentioned KLCI had just reached historical high at the region of 1645-1650. So something unusual was observed last 2 days, where KLCI has made more than 1% drop for 2 consecutive days, while all other Asia markets are stably GREEN. From a bullish outlook at 1655, suddenly it is at 1617 which is said to be testing the 1600 support.
Ofcourse, I see mixed view from different forums where one side claim this to be perfect opportunity to enter while another side shows view of bearishness.
Not sure where it is heading to in near term, but THE KLCI BEHAVIOUR IS STRANGE WHICH WE SHOULD TAKE NOTE.
Everyday at 5.30pm, you open up any finance website with a list of Asia stock market indices, you will find out:
1. If all markets are very GREEN, KLCI will be a little GREEN (0.1 to 0.2% will do)
2. If all markets are very RED, KLCI will also be a little GREEN, or occasionally a little RED (0.1 to 0.2% will do)
In general, it inches up a little by a little, regardless of what happened outside Malaysia, this is as if it is supported by an UNSEEN FORCE UNDERNEATH (what is that actually???). This matches the popular theory of Malaysia's economy and stock market are immune to external factors as we have strong internal play.
This is an interesting phenomenon to watch. Undeniably, Malaysia stock market is much less volatile compare to other regional bourses such as Hong Kong, Japan and Singapore which can easily fluctuate 1 to 2% daily. Malaysia market typically fluctuate less than 0.5% daily, and it doesn't allow shorting. It is very unusual to see more than 1% daily fluctuation.
This has to link with my previous post of "Missed the boat, Chase the boat, or Leave the boat" which mentioned KLCI had just reached historical high at the region of 1645-1650. So something unusual was observed last 2 days, where KLCI has made more than 1% drop for 2 consecutive days, while all other Asia markets are stably GREEN. From a bullish outlook at 1655, suddenly it is at 1617 which is said to be testing the 1600 support.
Ofcourse, I see mixed view from different forums where one side claim this to be perfect opportunity to enter while another side shows view of bearishness.
Not sure where it is heading to in near term, but THE KLCI BEHAVIOUR IS STRANGE WHICH WE SHOULD TAKE NOTE.
Monday, 13 August 2012
Pareto Theory in Stock Market? That's creative
Lately I met a friend who is kind of intelligent guy, shared his thoughts why only a few people make good money in stock market while majority lose money, using Pareto theory. This is something I haven't thought off in depth and it triggers me to think through it from another dimension. Here I triy my best to simplify and explain his theory:
Here's how the theory goes with the flow in sequence:
1. Original Pareto Theory says 20% of the people owns 80% of the wealth, which implies to wealth inequality. (I agree with this)
2. Then, people apply it into problem solving approach, where we should only focus on top 20% of root cause which bring 80% of the problems (I agree as well)
3. Then, it is also implemented into corporate world promotional and reward system nowadays. In many MNC's in every annual review 80% of the budget will be rewarded to the top 20% in the form of wage increment and bonus. (kind of agree)
4. Then, it is reflected into stock market or any other investment instrument market. 10% of the top investors profit from 90% of the investors, at the expense of their losses. (Totally agree)
Now we can see the difference between number 3 and 4.
In number 3 (corporate world), the fund comes from the company and distributed to all employees. Even if an employee gets the worst ranking in bottom 10%, the worst case is to get zero increment and zero bonus, but the salary still comes in every month. So there is no losses for any employee.
In number 4 (stock market), the fund comes from capital of every investor, with the intention to draw money from others to his own account. Those who profit are those buy at low price, and sell at high price. He sells at high price to investor who is willing to buy at high price. In this case he is gaining money from the person who is willing to pay more. The person who pays more might later find it difficult to have people willing to buy from him at a higher price. As time passed, he might find more and more people asking to buy at lower and lower price. In the end he might be forced to sell at much lower price due to fund constraint or fear.
Conclusion:
Gainers = buy low from losers, sell high to losers (only minority 10% are willing and capable to do this)
Losers = buy high from gainers, sell low to gainers (most people 90% likes to do this)
Total funds are still the same, just that the $ flows from majority to minority.
No wonder people call stock market as a Zero Sum game.
Indeed, if we factor in brokers who charge commissions for every trade, it should be called a Negative Sum game.
Here's how the theory goes with the flow in sequence:
1. Original Pareto Theory says 20% of the people owns 80% of the wealth, which implies to wealth inequality. (I agree with this)
2. Then, people apply it into problem solving approach, where we should only focus on top 20% of root cause which bring 80% of the problems (I agree as well)
3. Then, it is also implemented into corporate world promotional and reward system nowadays. In many MNC's in every annual review 80% of the budget will be rewarded to the top 20% in the form of wage increment and bonus. (kind of agree)
4. Then, it is reflected into stock market or any other investment instrument market. 10% of the top investors profit from 90% of the investors, at the expense of their losses. (Totally agree)
Now we can see the difference between number 3 and 4.
In number 3 (corporate world), the fund comes from the company and distributed to all employees. Even if an employee gets the worst ranking in bottom 10%, the worst case is to get zero increment and zero bonus, but the salary still comes in every month. So there is no losses for any employee.
In number 4 (stock market), the fund comes from capital of every investor, with the intention to draw money from others to his own account. Those who profit are those buy at low price, and sell at high price. He sells at high price to investor who is willing to buy at high price. In this case he is gaining money from the person who is willing to pay more. The person who pays more might later find it difficult to have people willing to buy from him at a higher price. As time passed, he might find more and more people asking to buy at lower and lower price. In the end he might be forced to sell at much lower price due to fund constraint or fear.
Conclusion:
Gainers = buy low from losers, sell high to losers (only minority 10% are willing and capable to do this)
Losers = buy high from gainers, sell low to gainers (most people 90% likes to do this)
Total funds are still the same, just that the $ flows from majority to minority.
No wonder people call stock market as a Zero Sum game.
Indeed, if we factor in brokers who charge commissions for every trade, it should be called a Negative Sum game.
Tuesday, 24 July 2012
Missed the boat, Chase the boat, or Leave the boat
The KLCI had recorded it's historical high on 1645 a few days ago, and it has shown some correction for last 3 days. Some other Southeast Asia developing countries also recorded historical high lately on this strong run.
Not sure if it is time to enter on this correction, or it's time to leave the market.
On the OPTIMISTIC side, it can be explained by this theory: The market is on a bull run, the up trend is confirmed and intact. We should ride on the trend, and any sign of correction is a good opportunity for entry. Furthermore, since it has broke the resistance of historical high lately which provides us signal that the momentum is strong and backed by strong buying sentiment. Always remember to follow the trend, "The Trend is your Friend". This is good sign to enter the market.
Then there's another way to look at it. From 2003-2007 we enjoyed a great bull run lasted for 4 years. Then since 2009 till now 2012 we also enjoyed a nice uptrend. Assuming base on theory above, now will be good time to enter to ride on the bull, we can breakdown the years as below, on hindsight:
(Pls note that I am just talking about general market and KLCI, not any particular counter)
Last Run:
2003: Better better better better time to enter, Valuation more more more attractive
2004: Better better better time to enter, Valuation more more attractive
2005: Better better time to enter, Valuation more attractive
2006: Better time to enter, Valuation attractive
2007: Good time to enter, Valuation not expensive
2008: !@#$%^&*?
This Run:
2009: Better better better time to enter, Valuation more more attractive
2010: Better better time to enter, Valuation more attractive
2011: Better time to enter, Valuation attractive
2012: "Good time to enter, Valuation not expensive"
2013: Could be "Good time to enter, Valuation not expensive" again.
2014: Could be "Good time to enter, Valuation not expensive" again.
and so on.............
If the bull run will keep on continue, last much longer than previous one, and "It will be different this time" for sure I am happy to jump in with big positions now, bottom line is I sell at the right time and right price.
The music will keep on playing and no one knows which day it will stop.
I don't know when the music will stop, but if now we blindfold ourselves and randomly pick a stock out of 1000 counters without any FA and TA study, we still stand a chance to pick a counter that will appreciate 15-20% within a week, which will prove the first OPTIMISTIC theory is correct. Of course it can happen another way round. That's why skill in Enter (buy) and Exit (sell) are equally important.
Not sure if it is time to enter on this correction, or it's time to leave the market.
On the OPTIMISTIC side, it can be explained by this theory: The market is on a bull run, the up trend is confirmed and intact. We should ride on the trend, and any sign of correction is a good opportunity for entry. Furthermore, since it has broke the resistance of historical high lately which provides us signal that the momentum is strong and backed by strong buying sentiment. Always remember to follow the trend, "The Trend is your Friend". This is good sign to enter the market.
Then there's another way to look at it. From 2003-2007 we enjoyed a great bull run lasted for 4 years. Then since 2009 till now 2012 we also enjoyed a nice uptrend. Assuming base on theory above, now will be good time to enter to ride on the bull, we can breakdown the years as below, on hindsight:
(Pls note that I am just talking about general market and KLCI, not any particular counter)
Last Run:
2003: Better better better better time to enter, Valuation more more more attractive
2004: Better better better time to enter, Valuation more more attractive
2005: Better better time to enter, Valuation more attractive
2006: Better time to enter, Valuation attractive
2007: Good time to enter, Valuation not expensive
2008: !@#$%^&*?
This Run:
2009: Better better better time to enter, Valuation more more attractive
2010: Better better time to enter, Valuation more attractive
2011: Better time to enter, Valuation attractive
2012: "Good time to enter, Valuation not expensive"
2013: Could be "Good time to enter, Valuation not expensive" again.
2014: Could be "Good time to enter, Valuation not expensive" again.
and so on.............
If the bull run will keep on continue, last much longer than previous one, and "It will be different this time" for sure I am happy to jump in with big positions now, bottom line is I sell at the right time and right price.
The music will keep on playing and no one knows which day it will stop.
I don't know when the music will stop, but if now we blindfold ourselves and randomly pick a stock out of 1000 counters without any FA and TA study, we still stand a chance to pick a counter that will appreciate 15-20% within a week, which will prove the first OPTIMISTIC theory is correct. Of course it can happen another way round. That's why skill in Enter (buy) and Exit (sell) are equally important.
Monday, 23 July 2012
FA or TA?
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.
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.
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