Why is technical analysis more popular than fundamental analysis in. India?

Mr.G

Well-Known Member
#1
I have seen that trader in India are more into technical analysis, even though fundamental analysis is more popular. Internationally, in equity cash and for investments people use fundamental analysis. But here in India people use the market more like a casino rather than an investment medium. Let's discuss this. (please do not start a fight whether which one is better
 

Mr.G

Well-Known Member
#3
Many people who are illiterate in both technical and fundamental analysis come to the markets, play on margin and gamble away. This has made a very bad reputation for the markets all of them think this is gambling. Only we professionals know that it is not.
 

Taiki

Well-Known Member
#4
I have seen that trader in India are more into technical analysis, even though fundamental analysis is more popular. Internationally, in equity cash and for investments people use fundamental analysis. But here in India people use the market more like a casino rather than an investment medium. Let's discuss this. (please do not start a fight whether which one is better
Hi Mr. G

You are right, but the investment that you are talking about here which is based on fundamentals, are primarily long term investment, where the investors keep their position open for more than 6 months to 2/3 years. But whoever is trying to make a living on trading need to keep withdrawing money on regular basis. And they get involved in daily buy-sell, intraday to swing and short term (2/3 days to weeks) trading.

Over such short span, the fundamental hardly changes, but technical does change. New price pattern gets created. breakout/reversal happens. So to understand this people need an edge over technicals.

It does not mean that they all want to double their money in a year. Whoever understands the risk:reward, and implements proper risk and money management will never put such a roadmap. Newbies often put such assumption and realize their mistakes after blowing up their account. So it is not about money, it is about recognising self and being aware of your goal.

Regards
Taiki
 

Mr.G

Well-Known Member
#5
But why trade short term and not long term? I mean long term is the only true way to build wealth for centuries.
 

Mr.G

Well-Known Member
#6
I am a dividend investor and after a time I know I will have enough money in dividends that I or my future generations won't have to work ever again. So why blow your mind up and fry your eyes everyday trying to time the market?
 
#7
But why trade short term and not long term? I mean long term is the only true way to build wealth for centuries.
Because a short term trader will increase his wealth much faster than the long term trader/investor. Here we are comparing good short term trader and a good long term investor ( A bad short term trader can blow up his account and a bad investor can also do that with equal competence. )Trading is relatively new in our country and we have not seen many successful short term traders.But there are a few very good short term traders who have already created wealth out of short term trading in a small timeframe of 6-8 years

Smart_trade
 

Mr.G

Well-Known Member
#8
And long term trader can do just by using leverage aswell. Short term traders use very high amounts of leverage and are permitted to short stocks. Without leverage short term traders are just frying their brains out for peanuts.
 
#9
I am a dividend investor and after a time I know I will have enough money in dividends that I or my future generations won't have to work ever again. So why blow your mind up and fry your eyes everyday trying to time the market?
You are a dividend investor so fine....continue on that path but all short term traders dont blow their minds and fry their eyes trying to time the market . Many successful traders do it for passion,fun and for satisfaction of solving the tough puzzle called markets. And they do it not out of compulsion to make money....many have accumalated wealth so much that with bank rate also they can have very comfortable income on their wealth. Many have invested part of their wealth in fixed income securities and part in trading and their income from fixed income securities give security of earning to their families so much that they dont have to work for money. Most successful traders have surpassed the limit of wealth which will give them very comfortable earning long back.

Short term trading can be fun and very profitable......much more than dividend income.

Are we going astray and talking about which is better, short term or long term trading/investing and deviating from subject of the thread which is " Why is technical analysis more popular than fundamental analysis in. India?"

Smart_trade
 

Mr.G

Well-Known Member
#10
That is quite true that people also do it for pleasure. But divided income also has its benefits. I want to start my own private fund, is there any way in your experience and knowledge I can make people believe that the market is not. A casino? I am very much upset with people thinking that. We are not gamblers, how can I make my future clients believe that?
 

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