QUOTE(cherroy @ Jan 13 2007, 11:55 AM)
It can be sum up like that
1. Correct fundamental & correct TA
- Gain through the particular stock & maximise the return rate by better timing of entry or exit.
2. Correct fundamental & poor TA
- still can gain through the stock since investing a well-managed and good prospect company but return rate is down a bit compared to (1) due to wrong timing of entry & exit.
3. Wrong fundamental & correct TA.
- might as well gain since get the timing right but invested in wrong company so risk is a bit high compared to above (1) & (2)
4. Wrong fundamental & wrong Ta
- disastrous
For speculating or speculate in futures, you can totally ignore the fundamental since you are speculating only for short term, TA can do it alone since you just look for price differential to gain, Genting or Iris, don't actually bother as long as there is price differential. (not to promote speculate since history tell us speculators always lose out due to human nature of 'greed')
But for long term investing, totally different case, fundamental part is essential since you don't want to invest in a no prospect and poor managed company, isn't it. For long term investing, fundamental is essential while TA as a supplement will be the better strategy
But sadly, people always mix up between speculating the investing which led to poor decision making. Eg. people rush to buy stock when market is hot to try their luck but if market turn against then they keep it for years become investing.
You must set whether you are investing or speculating.
If speculating then it market turn against, you need to cut lose, no matter what.
If for investing, don't actually care the short term movement since if company is good then surely the stock price will be on the upward trend for long term as well as getting handsome dividen rate.
yes using TA and fundamental is the essentials to make sure everything u do is right, without a good management, the company will collapse in no time, some of the stocks until now doesn't move at all, there r many reason.
most of retail traders, estimate 80%-90% r following the trend, tips to jump into the market, when loss, will scold stock broker, this and that. I agree with you as a long term investor, stock with a good fundamental and good management team, the stocks will perform better.
QUOTE(mucklampir @ Jan 13 2007, 06:01 PM)
for those who use fundamental analysis, how far u use dis method? just look at the PE, DY, ROE onli or thoroughly study their 5 years financial reports?
For using fundamental, do some homework, don't hope people will spoon feed you in investment. Using PE is useless, cause the PE doesn't reflect the truth projected growth of the company, better use PEG, ROE etc. Try to google, nowadays is very easy to learn this stuff compare to last time. haha
QUOTE(investmentlink @ Jan 13 2007, 07:34 PM)
I follow the trend...don't care it is white cat (good stock) or black cat (bad stock), the one know how to catch the rat (will go up & down/swing) is the good cat!
haha, u kinda risky fellow, erm... as for me, better study back and have a strong understand before i putting my money in.
Does anyone here believe in CANSLIM model in investing?