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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Chris who wrote (4919)1/19/1998 9:28:00 PM
From: STOCKGURU  Read Replies (3) of 42787
 
What is Technical analysis ? It is nothing but trying to predict
future behaviour of the stock price by analysing the behaviour of
the stock in the past. This could be a very good way to predict
the direction of the price movement of a stock if the price of the
stock was only a factor of the internal variables( product innovation,
management,marketing,corporate culture,quality of employee etc)of a
corporation. Most company's behaviour is cyclical. But a company's
performance depends a lot on the external market forces also. And the
marketforces are not cyclical. They are random events happening
at different parts of the world. These random market forces affects
the performance of an individual corporation a lot. That is the reason
why technical analysis is not correct all the time.For short term
marketforces are more or less constant so technical Analysis is good for short term price prediction.It is not very good for long term
prediction.
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