Technical analysis or fundamental analysis?

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Jul 13, 2017
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#1
Hello everyone! First time here thinking of becoming a day trader. My question is should I do FA or TA. The reason I ask because recently I have come to a conclusion that I am lazy, I thought I was disciplined because I spent all day reading books trying to value businesses (fundamental analysis) but in the past couple years have gotten nowhere I feel but that's not the bad part. The bad part is when I think the work required its overwhelming I feel like I have wasted alot of time and money on books, this is the second thing in my life I have spent alot of time and I feel its either not for me or I'm lazy or both. If I had a teacher would be alot better, I am not good at self teaching I have also realized, I always need help and I hate that, I just can't grasp things well. Even coding I been doing I have stopped because the most of basic of things I just don't get it.

I want to be rich within a 10 year time frame and I think that through value investing or fundamental analysis I won't reach it. Not with my small starting capital anyways. I have been looking at property investing alot more simpler nowhere near as much headaches and going good so far.


So do you guys think I should choose technical analysis since I don't like reading through years of annual reports, learning accounting (which I have a bit and is VERY boring), doesn't fit my timeframe? I guess I see technical analysis as alot easier and possibly I will find it more fun because I can see results quicker. I have always been more of a practical person that a theory person.

Thanks.
 
Jun 29, 2017
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#2
I am partly experiencing the same problem right now and I keep my interest in learning mostly with technical analysis as you can simultaneously learn and apply what you have learned in practice. But keep an eye on the news as well as is can be crucial game changer sometimes. Also I would suggest maybe switching from stocks to Forex for example and see how it goes.
 
Jul 13, 2017
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#3
I am partly experiencing the same problem right now and I keep my interest in learning mostly with technical analysis as you can simultaneously learn and apply what you have learned in practice. But keep an eye on the news as well as is can be crucial game changer sometimes. Also I would suggest maybe switching from stocks to Forex for example and see how it goes.

Sounds interesting. So you are currently doing fundamental analysis and not finding it fun also?
 

sminicooper

Well-known member
Jun 13, 2016
1,140
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#4
Hello everyone! First time here thinking of becoming a day trader. My question is should I do FA or TA. The reason I ask because recently I have come to a conclusion that I am lazy, I thought I was disciplined because I spent all day reading books trying to value businesses (fundamental analysis) but in the past couple years have gotten nowhere I feel but that's not the bad part. The bad part is when I think the work required its overwhelming I feel like I have wasted alot of time and money on books, this is the second thing in my life I have spent alot of time and I feel its either not for me or I'm lazy or both. If I had a teacher would be alot better, I am not good at self teaching I have also realized, I always need help and I hate that, I just can't grasp things well. Even coding I been doing I have stopped because the most of basic of things I just don't get it.

I want to be rich within a 10 year time frame and I think that through value investing or fundamental analysis I won't reach it. Not with my small starting capital anyways. I have been looking at property investing alot more simpler nowhere near as much headaches and going good so far.


So do you guys think I should choose technical analysis since I don't like reading through years of annual reports, learning accounting (which I have a bit and is VERY boring), doesn't fit my timeframe? I guess I see technical analysis as alot easier and possibly I will find it more fun because I can see results quicker. I have always been more of a practical person that a theory person.

Thanks.
It appears from what you say that you're looking for a quick and easy way to get rich without overly straining yourself. Trading isn't like that.

You said above "recently I have come to a conclusion that I am lazy". You will never succeed while that remains the case. However, if you could become super-efficient, that may look to other people like laziness but it isn't.
 

alextrader79

Active member
Jan 16, 2017
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#5
As for me, it's a good idea, cause I use TA mainly by myself
What concerns fundamental analysis, you should take into account economic and political events. That's all.
In fact, you even don't need that accounting, if you are not a long term trader.

I don't say that FA is unnecessary, but it is not so critical. You should know just the basics.
 
Jul 13, 2017
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#6
It appears from what you say that you're looking for a quick and easy way to get rich without overly straining yourself. Trading isn't like that.

You said above "recently I have come to a conclusion that I am lazy". You will never succeed while that remains the case. However, if you could become super-efficient, that may look to other people like laziness but it isn't.
Yeah I think you are right but my question is how isn't day trading to make a quick buck? It pretty much is you get in you get out. Sure you won't become rich overnight but you can make a couple hundred dollars a day if you know what you are doing, is that corret?
 
Jul 20, 2017
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#7
Yeah I think you are right but my question is how isn't day trading to make a quick buck? It pretty much is you get in you get out. Sure you won't become rich overnight but you can make a couple hundred dollars a day if you know what you are doing, is that corret?
Yes that is correct!
 

gerryg

Active member
Sep 9, 2013
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#8
I would advice you to teach your right things from the very start. In other words study technical analysis, macroeconomics, financial analysis and money management. That will certainly help you to understand and interpret market moves correctly.
 

tomorton

Well-known member
Feb 28, 2002
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#11
Technical analysis is far more important for short-term trading than FA. If you;re trading intra-day, FA is irrelevant apart from watching the economic calendar for upcoming news announcements form central banks etc.

But day-trading is the toughest way to make money, discipline to enter and exit on the slightest technical indication is key, and few people go from novice to winner. Much better to go initially for short-term but multi-day trades, either swing trading or trend-following. There's lots of guidance on the web and this site on methods, but simplest is best.

Going to back to property investment, you can get rich in 10 years by shot-term buying and selling in a fast-rising market. Buy, repair, decorate, stage and sell: flip the property within weeks if you're well prepared and have good contacts. Property flipping is another form of trading using TA: property investing is FA-based and should be on a multi-decade time-table - good luck to anyone who thinks they know where an individual property value will be in 40 years.
 
Jul 13, 2017
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#12
Technical analysis is far more important for short-term trading than FA. If you;re trading intra-day, FA is irrelevant apart from watching the economic calendar for upcoming news announcements form central banks etc.

But day-trading is the toughest way to make money, discipline to enter and exit on the slightest technical indication is key, and few people go from novice to winner. Much better to go initially for short-term but multi-day trades, either swing trading or trend-following. There's lots of guidance on the web and this site on methods, but simplest is best.

Going to back to property investment, you can get rich in 10 years by shot-term buying and selling in a fast-rising market. Buy, repair, decorate, stage and sell: flip the property within weeks if you're well prepared and have good contacts. Property flipping is another form of trading using TA: property investing is FA-based and should be on a multi-decade time-table - good luck to anyone who thinks they know where an individual property value will be in 40 years.
Hi mate, yeah I going to be investing in property I hope to get rich in 10 years, but will use a buy and hold approach instead of short term flip and sell, too many fees and that to be constantly selling and that. But with stocks I think fundamental analysis is WAY harder than TA the reason I say that is because I do fundamental analysis and finally starting picking up the work that is actually required. You need to know how the business and I thought I knew them because I knew what products they made and what they do. Turns out there is FAR more to know such as, where they operate, where is the revenue coming from, does the company have a sustainable competitive advantage, then you need to learn accounting which is tough and ****ing boring as hell, then you need to know how to make financial models, then you need to predict cash flows (dcf),you need to know what metrics to use for what industry, and probably the hardest of all which is deterine the intrinsic value of the business (this goes with DCF). There is ALOT more stuff and it never ends. I don't see how TA is harder, people say its 90% emotions, if you can control your emotions I think it shouldn't be too hard but I could be wrong.
 

tomorton

Well-known member
Feb 28, 2002
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#13
UK properties will be as probable as anything to rise in value in any 10 years, but not every property rises like every other property, and what drives price in a given postcode is difficult to tell at 10 years distance. But if its an investment property, not your main residence, its as good a bet as anything.

As far as TA and FA of stocks are concerned, you can never know all the relevant FA. And even if you could, and did, how could anyone analyse its importance better than the thousands of professionals paid to do that job?

But when the big players make a move, they move price. And why own something that the big players are dumping? Why dump something that the big players want to hold on to?
 

Quantt

Active member
Jul 23, 2017
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#14
Personally for me, I am probably lazier than you and that's why I am using systematic approach based on data. For FA I just cannot normalize the data and build a system to test and backtest. Same with TA, for me it is not easy to program different chart patterns to have a consistent results, so I have chosen simple price action strategies and this works best for me... For real estate investment, I am not sure how with little stake you'll get rich in 10 years, how much you are expecting the property prices to rise?
 

tomorton

Well-known member
Feb 28, 2002
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#15
Unlikely anyone gets rich buying a single property and holding only 10 years. Possible I suppose if you bought into the next up and coming district before its up and coming - but how to pin-point that?