As some one very new to this arena, I would just like to point what I am understanding of Trading since around 2 months of reading and studying. In this time I have studied Buffet, Lynch and Murphy and I think how it works is like this.
1) Long term Fundamental Analysis always works. Technical is doubtful, maybe it does but I have to still understand.
2) Mid term TA has more provenance as there are times the market takes time to adjust to the fundamental values of a company.
3) Short Term TA almost always works, if you follow Ranbaxy's stock for example it is following TA quite well but fundamentally Ranbaxy is a chor company.
However TA and FA can not explain certain things, The Syrian war, Draghi's speech or the tapering of QE by Bernanke.
So I am going to go ahead and make my strategy of following news papers and keeping my 70 strong trading list updated for any short fall or high and TA all these stocks for signals constantly checking FA to confirm.
As a soon to become day trader if some one tells me to read the balance sheet of a company and then place a buy order, by the time I will be done who knows where the share will be. Also a FA approach requires a very deep pocket to play, trading using TA even with 20,000 Rs is possible.
1) Long term Fundamental Analysis always works. Technical is doubtful, maybe it does but I have to still understand.
2) Mid term TA has more provenance as there are times the market takes time to adjust to the fundamental values of a company.
3) Short Term TA almost always works, if you follow Ranbaxy's stock for example it is following TA quite well but fundamentally Ranbaxy is a chor company.
However TA and FA can not explain certain things, The Syrian war, Draghi's speech or the tapering of QE by Bernanke.
So I am going to go ahead and make my strategy of following news papers and keeping my 70 strong trading list updated for any short fall or high and TA all these stocks for signals constantly checking FA to confirm.
As a soon to become day trader if some one tells me to read the balance sheet of a company and then place a buy order, by the time I will be done who knows where the share will be. Also a FA approach requires a very deep pocket to play, trading using TA even with 20,000 Rs is possible.
Psychology is most important for a day trader(not undermining technical edge or money management) and if you have a belief like "always" then it's going to give you pretty tough time.