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To: Don Pueblo who wrote (579)6/6/2001 8:06:23 AM
From: Don Pueblo  Read Replies (2) | Respond to of 1016
 
FUNDAMENTAL ANALYSIS

(c) 2000 TLC may not be reproduced without permission

Fundamental Analysis, or "FA", is the term used for the study of the value (or potential future value) of a stock based on economic, political, or other such data.
You can find out everything you want to know about FA on the Internet or at the library. Hundreds of books have been written about how to choose an investment using FA.

FA is a very valid way of determining the value of a stock. There are many excellent books you can read to learn more about FA. Every book by Peter Lynch is really good. His books are a great introduction to the stock market, and if you want to start off with something, start off with “Beating the Street”.

Almost everyone that invests uses a combination of TA and FA. For every investor, there is some personalized combination of the two that he or she favors. The thing to remember is that just because it works for somebody else doesn't mean it's the best thing for you. If everyone did the same thing, there would be no trades in the market.



To: Don Pueblo who wrote (579)6/6/2001 9:15:07 AM
From: HairBall  Read Replies (1) | Respond to of 1016
 
TLC The one thing about Technical Analysis that is agreed upon by almost all technical analysts is that "nobody understands why" the chart patterns form. It is evident that almost all technical analysts don't care why chart patterns form. The simple fact that patterns form is all that is necessary for the technical analyst. Trying to understand why chart patterns form appears to be antithetical to the traditional concepts of technical analysis - that is, why chart patterns form is Fundamental Analysis!

There ARE REASONS chart patterns form VERY GOOD REASONS. And if you trade using TEND LINES, CHART PATTERNS and or PRICE ACTION SUPPORT/RESISTANCE AREAS you need to know THOSE REASONS...

Regards,
LG