As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Value Investing
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Friday, 25 December 2009

Fundamental or Technical Analysis?

The Truth about Fundamental or Technical Analysis is that both are Guesswork and Speculative. Their only differences are method used to guess and the period of Validity of Time Frame to guess and to speculate.

Technical Analysis: Much Shorter-Term guesswork and Much Shorter-Term period of Validity of Time Frame to speculate on stock price movement; and can be as short as few minutes.

Fundamental Analysis: Much Longer-Term Guesswork and Much Longer-Term period of Validity of Time Frame to speculate on the ability and capability of the companies to produce consistent earning, dividend payout and perhaps some stock price appreciation.

Fundamental Analysis looks like this:

Counting the eggs, and guessing and speculating the quantity and quality of the chicken to lay future eggs.

Technical Analysis looks like this:

How many more or less eggs are coming?
Where are the Chicken? What is that?

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