Combine TA and FA

#1
Hi friends...

" Markets emit huge volumes of information. Our tools help organize these flows into a manageable form. It is important to select analytic tools and techniques that make sense to you, put them together into a coherent system, and focus on money management." - Alexander Eldar


I have a combination of short, medium and looonnnggg term bets.
I have a database of a lot of companies. If the price is less by 25% of the average PE ( say 2 years ) x Trailing EPS That qualifies for attention, provided the PAT and Topline Growth is consistent. Then I wait for entry till the MACD in the weekly chart turns positive. After it achieves the mid target, I take the capital out and let the profit to run looonnngg. Till i enter again.
This process populates my PF and when my PF as a whole reaches new high I will sit and close all my laggards...

Am I doing right ... Please suggest. Have a look at the database attached
http://www.traderji.com/attachments...1206902820-fundamentals-company-ratnamani.jpg
 
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#4
Many-a-times TA and FA point in opposite direction.

Can you tell me how u organize and get authentic company data?
Thanks.
 
#5
Hi dweep

TA on indexes are predictable to an extent but not the Individual Stocks.
Not only FA and TA , The TA on daily chart and TA on weekly can have different directions. TA on each of min, daily, weekly prices are useful for different holding period of stocks.

But any chart we refer should be confirmed by the chart of bigger durations.
The main reason behind TA failure is because , In between 15 Candles in a weekly chart there is one Quarter Result which can abruptly upset any pattern formation.

We have to begin from few companies we like and collect the quarterly result data from BSE site and try to calculate the fundamental ratios.

Regards
Nanjil
 

riser3

Active Member
#7
Many-a-times TA and FA point in opposite direction.

Can you tell me how u organize and get authentic company data?
Thanks.
Simply speaking TA tells you how to time the stock FA tells you which stock to pick and there is one more thing PM tells you how rich you become

PM is portfolio Management and not Prime Minister
 

oilman5

Well-Known Member
#8
Hi dweep

TA on indexes are predictable to an extent but not the Individual Stocks.
Not only FA and TA , The TA on daily chart and TA on weekly can have different directions. TA on each of min, daily, weekly prices are useful for different holding period of stocks.

But any chart we refer should be confirmed by the chart of bigger durations.
The main reason behind TA failure is because , In between 15 Candles in a weekly chart there is one Quarter Result which can abruptly upset any pattern formation.

We have to begin from few companies we like and collect the quarterly result data from BSE site and try to calculate the fundamental ratios.

Regards
Nanjil
........................................................
NO the main reason of ta failure.......quack deals in ta.
min cmt should comment on it.
Most ta practicioners r not even qualified to call them ta-learners.
It takes around 10000hr of watching price/chart........Hurst had commented many yrs back.
.....................................................
btw.........all others comments r ok. Thanks to Nanjil for this nice post.
 
#9
Fundamental analysis is a lagging indicator. Stocks begin to break down technically before it become visible that the fundamentals are changing. Market psychology is technical analysis. When market psychology changes it means that there are more sell signals than buy signals. Those who are watching can detect this subtle change. Nothing is perfect not even technical analysis, but the trouble will show up in the technical picture before it shows up in the fundamental picture.
 
#10
  • FA tells us to buy whenever there is undervaluation, and sell it when there is a over-valuation. This holds good at an efficient market But Mr.Market is not a balanced person. It rather behaves like having bipolar disorder with wilder mood swings from Depression to Euphoria and hence overvalues and undervalues much beyond the comprehension of a sane investor. If we Buy without TA we may buy / sell without taping the reasonable profit,
 

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