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very depressed after losing $13K in stocks.

Whether it is TA or FA, you've to get the numbers rite; especially so with FA having to analyse so many financial ratios (for very serious Investors).  

 

All said, singaporegal's view of FA or TA; and  FA and TA combo is sustainable. Like she said, each individual's trading pattern differs.

To iPunter, TA may be supreme and not unreasonable a reality. With me, TA is neither supreme nor reasonable.  Rather, I look at a stock's FA as well as TA (with the limited knowledge I currently have).

 

When you think about them, a lot of things don't make sense to us mortals even.  :)

 

I tot God never rest  and the same goes with DEVILS....hahaha!

 

Saturday is the Jews' rest day. Also, they are not to be involved in a lot of activities. This is because God had a rest on Saturday according to Genesis. Sunday is a normal working day. :)  

 

Sunday is no Sabbath for them. :)

 

Haahaa! Guess so, iPunter .... Do you guys know that Israel market trades on Sunday?! Shocking since Sunday is a rest day.

http://www.marketwatch.com/news/story/israel-shares-lower-banks-down/story.aspx?guid=%7B2641F62F%2DD436%2D4C6D%2D94A6%2DA5DA9D37084D%7D

 

You must be missing the Dow tonight!  :)

 

Indeed a great loyal forum - SJ! Even on Sunday, pple still log in to check .... Keep it up, guys! :)

 

hehe...  in the wet market people always bargain and bargain for lower price. But in the stock market there's no bargaining - you want you buy quickly buy. If not, it may run away, then you have no chance to buy. But some people have good patience - they can wait. And waiting is just like bargaining. :)

 

Just sharing  my tot, wishes no offence to other, can ignore my Cnersave which i did not opt ot delete it out, my apologise.

 

Trading in stocks is no exception like in any wet, dry market since it idea is a products of many thousand of years back. Some buy while other sell to take profit. This will create the market. Like any other stocks, Cnersave will move in according to buyers' or sellers' demand (whether U punt speculate or invest). On record, it's moving upwards is already encouraging and well enknowledge and recognizable. This can it'self trench upward as more institutional fund mgr and retailers lay their $$$ hands on, sort of weeding out weak holders with strong one coming in...this cycle is very effective and can push up it shares price gradually. Like wise Strong one letgo and weak one coming in.....
No two ppl will actually think alike in what ever they do. (buy/sell or hold).  FYI oni: Not an inducement to do trading.

 

Wow... haha... intense discussion going on about the supremacy of TA or FA.

This is my humble opinion -
The "supremacy" of either TA, FA or a TA-FA combo really depends on the person using them. If my guru, Larry Williams, were to use FA, I'm very sure that he would probably suck at trading because his temperament and character clashes with the skills needed to perform good FA. Conversely, if the world's greatest FA investor, Warren Buffet, were to suddenly switch to TA, he would probably start losing money too.

There is no right or wrong. I have friends who have made a lot of money just doing FA. I also have friends who have lost money regardless of TA or FA.

Bottom line is this - we each have to find something to suit our character and style.

 

1)First of all, TA is not just a concept. It is a living practice by professionals and institutional market operators in the execution of their buy/sell decisions. This is one reason why there are targets and revisions to these targets.

2)Stock analysts exist to serve a need for qualitative (fundamentals) and quantitative (value) information about companies. This is something quite separate from the activities which takes place in the  marketplace.

3)As I do not know the background of the case cited where there's a devastating loss I will assume he is a private investor.  Devastating losses are usually the result of poor trading practices. If good trading practices are employed, the losses would not have reached devastating levels in the first place. Being diligent  in  monitoring a company's business affairs and stock price alone can hardly be referred to as good trading practice. Good trading practise includes the act of readily liquidating a stock the moment signs of weakness are apparent. Such weakness can only be discerned  if an 'outsider' practices TA.

4)Knowledge of basic TA principles is a prequisite for anyone  entering the stock market  except those  who are willing to enter at a randomly chosen point and  are willing to hold through thick and thin until a profit is achieved. But this can hardly be regarded as an achievement unless the profit happens to come soon after buying.

 

 

If the concept of TA is taken as being supreme relative to other fundamentals, how does one explain the falls of CAO, ACCS and Citiraya.  On the same vein, singaporegal would have picked, perhaps 9  out of 10 profit-making stocks.

The issue of the price of a particular stock may be important an important consideration, be it to retail investors or to institutional buyers, but it is still not the "all important, all consuming" factor with each and every trader, big or small.  If it were stock broking firms all over the world dont need the skills of their in-house stock analysts.    All they need is to pay uncles, aunties, retirees, students, etc, to sit infront of the computer screens and watch the movements of stock prices.

A real life example I can give is that of one of my friends from law school.  He's wealthy but his loss of  >S$600,000/- over CAO was still devastating to him.  He didnt buy into CAO without performing his due diligence nor did he fail to monitor its share price daily.

With me, just as it is important to lead a balance life-style, so it is also important to balance out the FA with the TA.  At the moment I know very little about TA and its very kind of singaporegal to continuously update the TA movements of those counters posted in SJ.  But it does not imply that I will buy a particular share of the stock of a company whose business I know nothing about.

There goes my 2 cents worth.

 

For one to be able accept the merits of TA, perhaps the term "TA" needs to be better understood in the first place. It would help if it becomes known simply as "Price Action Analysis" or even "Market Analysis".

Any person or institution, when dealing in the buying and selling of stocks, is primarily interested only in it's price. Any other related information becomes secondary or even unimportant.

Hence use of the term "supreme" to describe TA should not be regarded as unreasonable. :)

 

Disagreement per se is both healthy and normal.

But what only matters is that TA reflects reality in price. And in the complex marketplace, price is the ultimate determinant of reality.

 

I dont mean to be disrespectful to singaporegal for her TA expertise but I must disagree with iPunter's view that it still reigns supreme. There is no right or wrong FA or TA analysis and I would be very surprised indeed if someone were to tell me that he/she makes tons of monies based solely only TA or FA.  I am of the opinion its combination of both methods.  Although singaporegal had never attended trading courses nor subscribed to expensive trading software she still makes money based purely on her TA analysis and her intuition (high  share volumes and  priced above $1-$2 : these assumptions equate to strong fundamentals). As for Nostradamus, as he indicated he has never bought any investment book in his money-making instinct.  He relies on both FA and TA.

 

Don't worry Singaporegal,

Who in his right mind would charge you for being so sensible!

TA still reigns supreme, no matter what.

TA simply is reality.  :)

 

Hi rickytan and iPunter,

I am guilty as charged! I have sometimes bought into stocks without knowing what the exact business of a company.

I look at things in a slightly different way. Because I only buy stocks that are between $1 to $5 with high volume.

My basic assumptions are these -

(1) High volumes mean high public interest which means that the company must have a business that's making a big impact, regardless of  what they do.

(2) If they're priced above $1 (preferably above $2), it also implies that they have survived their days as penny stocks and are reputable stocks in the market.