Aug 10 2008, 01:47 PM
QUOTE(Jordy @ Aug 8 2008, 08:56 PM)
Investing is not Mathematics or Physics, and you do not have to know which is which. In stock market, basically there are only 2 systems:
- Technical Analysis (Charting and trends)
- Fundamental Analysis (Valuing a company through its books and prospects)
Be it Technical or Fundamental, both are also looking for undervalued stocks to trade/invest in. But the difference is Technical is short term and Fundamental is long term.
- Technical Analysis (Charting and trends)
- Fundamental Analysis (Valuing a company through its books and prospects)
Be it Technical or Fundamental, both are also looking for undervalued stocks to trade/invest in. But the difference is Technical is short term and Fundamental is long term.
http://www.investopedia.com/terms/t/technicalanalysis.asp
dun think technical looks for undervalued companies. They look for trends of companies.
QUOTE(Jordy @ Aug 8 2008, 08:56 PM)
Since you do not need a high IQ to invest in stocks, you do not need to know what is Value Investing and Fundamental Investing. Your way of fundamental investing could be different from my way of fundamental investing. There is not identical "system" so to speak. You can change the "system" to whatever that suits you. But the bottomline still stands, that you ARE investing based on the fundamentals.
have to agree on that. Even my way is not 100% Buffett.. maybe 25%
QUOTE(Jordy @ Aug 8 2008, 08:56 PM)
But do you really know when it is undervalued or overvalued? No one knows, because good businesses will keep growing, so does the value.
True, nobody knows... we just go with the assumption that we find logical (individually)
QUOTE(Jordy @ Aug 8 2008, 08:56 PM)
The best way to keep your investment growing is to keep invested as the company grows. That is what I call a good "system".
thats a good system.
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