I became interested in the stock market a while ago and I have always seen a lot of controversy over TA and FA. I have personally used FA in the past and have found decent success with it, haven’t been giving back 30% every year like Peter Lynch, but have made decent money over the years. I USE FA, but because there has been so much controversy over ta, I have researched it and even used it in market simulators in the past. I am going to share with you what I have found using both methods trying to avoid bias towards either.

Explaining both methods

Technical Analysis USES Chart patterns and indicators that attempt to predict the direction a stock might take in the future. TA is usually a commercial exchange of 2 to 8 days) or a short -term trade (2 to 6 weeks). TA also assumes supply and demand, liquidity or volatility, and a somewhat valued price. Fundamental analysis Attempts to predict the direction of a stock based on the company’s financial statistics. They are usually long-term operations or investments.

Yes, I think both methods work. The financial statistics of a company are closely related to the price of an action. When a company produces good earnings and revenue, the stock price will go up. Momentum DOES exist in the stock market Creating patterns and indicators that read momentum An accurate way to predict short-term price movement.

Fa is Better for Bigger ACCOUTS AND RISK AVOIDERS. TA is better for smaller accounts and risk takers. The reason for this is because you are a faster and riskier way to make money while Fa is a slower and less risky way to make money. This is due to the volatility of actions in TA. A big birthday under high risk will probably make the owner shit his pants, even if he’s making good money right now. Small high risk accounts aren’t too much because it won’t be death to you if you lose everything, especially if you’re pumping brass. In thriving markets like the one we’re in right now, TA is probably a better option because you’re less likely to have losing trades and the volatility of stocks on TA makes for big winners. Below average or poor markets Fa is a better choice because volatility in Ta Ta creates big losses on losing trades, while losses in Fa will likely follow the market.

Many people argue that there are not many successful technical analysts that the average citizen has ever heard of, while there are billionaires who use FA like Warren Buffet. I do not think this is an automatic proof that it does not work or does not have a significant value. As I said earlier, TA trades liquid and volatile stocks, these stocks are usually very small which means you can’t invest that much money in them without drastically changing the price. This makes it very difficult for rich people to use TA and produce exponential performance. Even if someone used TA and was very successful, once they reach the 10-20 million range they will probably move on to fundamental analysis where there are many more stocks to choose from due to the redundant need for volatility. Another reason successful technical analysts may not be known to everyone is because they use systems. A TA SYSTEM IS A SYSTEM THAT SOMEONE CAN MAKE UP THAT WILL USE TA INDICATORS AND WILL TELL YOU EXACTLY WHEN TO ENTER AND EXIT A TRADE BASED ON THOSE INDICATORS. Once these systems are done, they are so simple that many people have programs and robots that exchange them using the system. Now, if someone were to create a system that printed money directly, they probably wouldn’t want anyone to get their hands on it because it would be so easy to use that anyone could do it. Too many people using the sales system will reduce its effectiveness, so good technical analysts are likely to be very secretive about their work.

Why do people say that one or the other doesn’t work?

People Who Say One OR The Other DOESN’T WORK OR HAVE NOT TRIED THE OTHER OR THEY HAVE IT BUT IT DOESN’T DO IT CORRECTLY. I’ve seen many articles that say Ta doesn’t work or Fa doesn’t work, but they don’t even know what it is or how people trade using it.

conclusion

Both FA and TA work, and as long as you understand the concept, you’ll be successful with either.

• FA is better for wealthier people with larger accounts.

• TA is better for smaller accounts.

• TA will perform very poorly in bad markets.