Fundamental analysis vs Technical analysis

[net123_killer]

From trading perspective i would say TA is the most powerful tool.

But from Long term Investment perspective i would say FA is the most powerful tool.

 

[Capricorn]

fa is analysis of the fundamentals of the company like eps, pe ratio, book value, etc., which are real figures. whereas ta is analysis of the trend expecting some future price movements. hence in my view, fa is more scientific and dependable than ta (particularly in the long term investment decisions)

Hmm.. What about Satyam, where the figures were cooked.:rofl:

NOt that TA is always accurate.

Its like choosing between the devil and the deep sea, to each his own.

 

[rvm123]

Everywhere there will be some exceptions like SATYAM. But that should not decide the normal outcome

 

[columbus]

Hmm.. What about Satyam, where the figures were cooked.:rofl:

NOt that TA is always accurate.

Its like choosing between the devil and the deep sea, to each his own.

There are indicators based on VOLUMES. Other figures can be cooked up ( as
in the case of Satyam) but Volumes can't be.Of course Volumes can be
cooked up in case of Circular Trading.But it is seen less in case of HIGH
priced stock.

 

[sahilmashur]

of couse fundamental analysis is better coz no technical analyst has become a billionaire but billionaires like warren buffet,peter lynch,charlie munger,rakesh jhunjhunwala are all fundamental analysts

 

[lazytrader]

FA and TA are like 2 sides of a coin. Ask a FA for a entry point. Ask a TA about the long term prospects of the company.

It's not what about which is better. A hammer and a screwdriver are both useful but what is it you want to do with it?

Fundamental analysis will tell you about whether you should invest in the comany or not. Risky companies can be identified from the financial statements. Then use TA to identify a good entry point and determine a SL/exit strategy.

Fundamental analysis is a lot harder to learn though. You need to be well versed with finance and accounting. I found TA a lot easier to learn by reading but for FA you'll need someone to assist you with the background info that you are supposed to know.

 

[MurAtt]

FA and TA are like 2 sides of a coin. As a FA for a entry point. As a TA about the long term prospects of the company.

.....

Sach me ... rest chahiye bro ...

 

[lazytrader]

.
Haan such me. 5AM ko soya tha pechle raat ko, or is it subah?!

Corrected....

 

[tranquill1800]

there must be a third option.....

3. "Both"

Both have to be in sync with each other..first strong fundamental, supported with technical, ofcourse!

 

[Goofy]

Sach me ... rest chahiye bro ...

Mr. SM is right, guys. Give it a rest. I mean, the whole discussion is going to be circular and annoying. By the way, it reminds of a story of two professors who fought for years over the issue: that, who was better - Mahavir or Buddh?
Nobody told them to read both of them; and see what works in life, and what doesn't, from the teachings of the both.
I day-trade. My tool of analysis is a ball of trillions of networked neurons behind my own pair of eyes. My decisions are based on the up-down jumping blue and red bars on the screen. When I want to cofirm my intuition, I open up charts. When I am confused about a certain stock, I trawl through the Net and find who and what are making a company tick or busting it.
So stop nitpicking, and get on with trading. The screen tells you all!