Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Learning To Invest Correctly - A Shared Experience -- Ignore unavailable to you. Want to Upgrade?

To: Phil(bullrider) who wrote (30)	7/25/1998 11:31:00 AM
From: Nazbuster	Read Replies (2) \| Respond to of 253

Bullrider, I sincerely feel that Fundamental Analysis, F/A, is much more beneficial than Technical Analysis, T/A, in determining where a company's stock price is going I agree! It's just that I have never had an understanding of entries/exits and found myself exiting a "win" too soon (because I was concerned about volatility at high prices) and hanging on to losers (because the historical fundamentals were strong, but other factors were changing the landscape for the company and I was not informed enough to detect or understand the changes). Look at a stock like Home Depot. Up and up and up. Can this continue? How does one know when changes in competition, the housing market, the job market, etc. will change the buying habits of their customers? By the time it shows in a quarterly report, it's too late for the investor. Then again, look at WalMart. In a trading range for all of 94, 95 and 96. TA would have clearly indicated a buy in April-May 97 and would have kept you in it through now (from 27 to 64). I'm looking to TA to know when to enter/exit the stocks I pick because of their fundamentals. It's only another guide. I agree that there are no easy answers!

To: Phil(bullrider) who wrote (30)	7/25/1998 4:44:00 PM
From: Lachesis Atropos	Read Replies (2) \| Respond to of 253

Fundamental Analysis, F/A, is much more beneficial than Technical Analysis How can one prove that? Neither work as published in books. Look at Motley Fool for an example of how poor FA can be. Their lemming strategy works their FA sucks. Needs less to mention all the TA stuff for computers. Both rely on forward-looking calculations. Analyst's come up with dubious earnings projections, companies fudge figures, and MMs feign trends. All a trader has is second hand regurgitated mush to make decisions on -- though some do well. Paper trade your ideas and go with what works. If one bought and held Microsoft, no type of analysis would be able to out-perform it -- FA or TA over such a long period of time. I think if one was a visionary then one could make good decisions; however everyone is a visionary now a days. Lachesis