Fundamentals or Technicals

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There has always been a  long time battle between investors as to which type of analysis works better, fundamental or technical. Each camp will give you a compelling arguement as to why their method works best.

Here are my thoughts;

Fundamentals, while important do not help the pro trader guage what is going on during short term time frames. This is where technicals and charts really can show you the way. Because I am a short term trader in OTC stocks I want to know what is going on in the here and now and am not as concerned about fundamental analysis which may have more strengths in the 1-5 year time frames.

Charts show pro traders the graphic flow of money. They show the repetitive human nature of greed, fear, and uncertainty. Charts do not lie. Anyone can say anything about what the fundamentals of a company are but as well all know these opinions are not always true. Even financials do not always tell the whole story  with all the different accounting tricks that can be used by companies to paint the best picture to the investment community. The fact is that charts are always telling us the truth about what the market thinks about any  stock at any time. Now we may disagree with what the market thinks about a stock and may take a trade going against what the market thinks but at least we know that ahead of time.

A future pro trader will learn how to use charts to their advantage.

Good Investing.

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