Saturday, May 30, 2009

FA vs TA: Mine One Better Than Yours One!!

My Dearest Brown Cow,

  • I've yet to meet an impressive person who has needed to impress people - Dr. Brett Steenbarger

That's about sums it all, isn't it?

The need to impress. The need to tell everyone that they are good. And in the stock market, the ever need to insist that their way, the method is the best. Have you not heard the endless, endless, endless talk on Fundamental Analysis (FA) vs Technical Analysis (TA) vs the hybrid FATA way.

Well this posting is different. I am NOT going to tell you which method is the best. :D

Now just for a minute.

Think about the following...

In a stock market, in any stock market, there is a mixture of good stocks (good as in sense that it has the so-called 'fundamental values' - but debates will exist on the branding of such a stock) and also bad stocks ( and just as good stocks - debates will also exist on the branding of which stock is bad! ) and also the so-so average stocks.

That in the stock market there are good and bad stocks.

Is this agreeable?

And on any given day, except on Saturdays and Sundays, any of these stocks can move up and down.

Is this not a fact?

So when a good stock goes up but the TAs missed the stock pick due to mixed technical signals or perhaps the trader was not comfortable with the trading setup seen.

Does this means the trader is lousy for not wanting to trade that stock?

Or in a nutshell, does the trader have to be in every single stock that stands a chance to move higher?

And what about the 'bad, lousy fundamental' stocks shooting for the stars? Not possible? If the investor chooses to forgo the potential possibility of making money in the stock by not to investing in it, does it mean the investor is lousy?

Or in a nutshell, does the investor have to invest in every single stocks that stands a chance to move higher?

How now my dearest Brown Cow?

Could you understand why folks always want to impress others by insisting their method is simply the best?

Or could you understand why when one xyx stock moves up, these folks, with the desire to impress, feels the urge to declare that ** method does not work if ** method does not suggest/recommend a buying position in the stock? For example, a bad, lousy stock moves up, does it make sense to declare that FA does not work if FA does not recommend the buy for the stock?

Now since you know I am always flawed and needless to say I know nothing, perhaps it's best you pay not much attention to what I am mumbling about now and decide for your own good self which method best fits you.

So if FA is good for you and can make money for you, stick to it!
Or if TA is good for you and can make money for you, don't go changing!
Or if TaFa is the only method that makes sense for you, stick to it!

:D

Damn.. accidently clicked on the 'publish' post!

I could go on and on and on...

Perhaps it would be good also to understand really what each method is for.
Perhaps it would be good also to understand why and when the method won't work.

And needless to say, have you not seen folks declaring THE method to be lousy when not realising that perhaps they are flawed themselves?

Not possible? Me? I have seen it way too often. ;)

Using a fishing rod to fish a cow, just doesn't work! LOL! Sorry for the pun, my dearest but I think you do understand what I am trying to say here.

:D

3 comments:

  1. it's about finding the method that suits you, that's all

    there's no such thing as one size fits all

    ReplyDelete
  2. argeed. no such thing as right or wrong.

    TEH

    ReplyDelete
  3. Agree. i always wonder why there are so many ppl attacking TA folks. i've met some guys who process excellent TA skills. but they simply don't come out and shout how good they are.

    ReplyDelete