Why is this section ignored??

jdm · #11 10th April 2007, 01:02 PM

for any type of analysis one requires data. for a sound FA, the figures are not enough. company visits, interacting with the top brass etc etc are part and percel of the game and are normal practice.

the only data which a retail investor can put his/her hands on, is the balace sheet which the companies provide. but sadly it not always gives the true picture of the company, rather it shows a picture which the promoter/dicrectors of the company wants to show. fiascos like enron, tyco, ca etc are just examples of how this trend is prevelent even at the best of regultory environments.

most of the fundamentel analyst (read retail guys) are nothing but, as oxy already said, are news readers. any person who is willing to dig his/her head (read has 12-16 hours to spare) in FA, getting data is extreamly difficult unless he/she is part of a professional team (with any broker or institution). this makes FA somewhat redundant.

oxusmorouz · #12 10th April 2007, 02:10 PM

Quote:

Originally Posted by jdm

for any type of analysis one requires data. for a sound FA, the figures are not enough. company visits, interacting with the top brass etc etc are part and percel of the game and are normal practice.

the only data which a retail investor can put his/her hands on, is the balace sheet which the companies provide. but sadly it not always gives the true picture of the company, rather it shows a picture which the promoter/dicrectors of the company wants to show. fiascos like enron, tyco, ca etc are just examples of how this trend is prevelent even at the best of regultory environments.

most of the fundamentel analyst (read retail guys) are nothing but, as oxy already said, are news readers. any person who is willing to dig his/her head (read has 12-16 hours to spare) in FA, getting data is extreamly difficult unless he/she is part of a professional team (with any broker or institution). this makes FA somewhat redundant.

JDM, you are right. In TA, because of the data involved, we are atleast able to put forth an input output relationship by trial and error (if not by systemmatic study) which provides a base for education in this field. How then is a person to learn "practial FA" without being employed by an institution?

uasish · #13 10th April 2007, 02:32 PM

Oxy,
My 1st exposure to FA was ICICIDirect.com

Asish

oxusmorouz · #14 10th April 2007, 02:56 PM

Quote:

Originally Posted by uasish

Oxy,
My 1st exposure to FA was ICICIDirect.com

Asish

I already have some theoritical exposure but I'm sure that is not going to help me in anyway...ratios and historical cash flows isn't going to be of any use and I'm sure FA is beyond these historical figures just like TA is beyond historical time series...
And the worse part is that there is no clear cause effect relationship as in TA and no means to backtest our results...

uasish · #15 10th April 2007, 03:10 PM

Quote:

Originally Posted by oxusmorouz

I already have some theoritical exposure but I'm sure that is not going to help me in anyway...ratios and historical cash flows isn't going to be of any use and I'm sure FA is beyond these historical figures just like TA is beyond historical time series...
And the worse part is that there is no clear cause effect relationship as in TA and no means to backtest our results...

Wow you know far far better than me in FA

saga364 · #16 10th April 2007, 03:14 PM

By the way TA works on the basic assumption that past data is a good indicator of future ...

I refuse to believe in that !

And no, am not saying TA is bad, am just presenting my personal opinion why I dont use TA.

Regards,
http://pseudosocial.blogspot.com

VISHAL JAIN · #17 10th April 2007, 04:11 PM

hy ajay

i think our traderji members are traders not long term investor, so they are interested only in TA rather then FA

aca_trader · #18 10th April 2007, 05:48 PM

Quote:

Originally Posted by oxusmorouz

I'm not debating on which method is superior,Ashish...just surprised by how one method can be ignored completely! Surely, there must be boarders who thrive in FA for their living! Why is there no post on techniques adopted?

I am also not talking about superiority. I am just pointing out the reason about the popularity of TA (The short term focus).
Of course, there are boarders who are using FA but when threads do not get replies, nobody wants to keep on posting just for the sake of it.

Best Regards,
--Ashish

aca_trader · #19 10th April 2007, 05:55 PM

Quote:

Originally Posted by saga364

By the way TA works on the basic assumption that past data is a good indicator of future ...

I refuse to believe in that !

And no, am not saying TA is bad, am just presenting my personal opinion why I dont use TA.

Regards,
http://pseudosocial.blogspot.com

FA also assumes the same. Historical PE and mean diversion, two of the most popular basis tenants of FA are about historical behaviour only.

Best Regards,
--Ashish

uasish · #20 10th April 2007, 10:12 PM

Hi,
Infact any Mkt is an efficient engine to discount Future in today's price.All is built in the price.I firmly believe price fortells event follows.To-day also Sesa Goa exhibited the same.It is our inability to read the story in the chart.

Asish

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