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

gunsho

Well-Known Member
#12
But why trade short term and not long term? I mean long term is the only true way to build wealth for centuries.
Depends on goal of person to person. One of my goal of making every month green is not possible on long term (as it says). As there are many who lost in short term trading, there are many who lost in long term investments also. One cannot claim this is better than the other one. If something works for you, enjoy it :thumb:. It is not good to say others are doing bad ;)
 

VIKAS 21

Well-Known Member
#13
Short Term Trading & Long term trading both are good But everybody has different taste & that's why think differently..

Short Term trading requires a lot of discipline & patience & deep understanding of market..
One must be able to consistently watching the screen & able to take quick Entry & exit..
One must be well versed with T.A. & P.A.......

It is easy to trade the trend on long term in comparison to short term...

If we search on TJ we will get very few successful short term traders but everybody here trading well long term..
But it doesn't mean short term is not rewarding , Short term trading is much much more rewarding than Long term trading... But not every ppl has that ability to trade short term trading, so ppl are happy with dividends only...

saying " Angoor khatte hai.."
 
#14
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?
You must have a track record of few years in which you are making money every month.....and your peak to valley drawdown should never exceed 5-7 %. In short you should trade as a business and not take a big bet and trade with " is paar ya us par" mindset. You must also create absolute credibility and faith in minds of your investors that you mean clean business and your credibility should be such that people will be sure that if something goes wrong with the fund, this person will sell his assets and pay up his investors and not raise his hands and fold the fund blaming the markets, Government,politics, Eurozone issues etc etc...this credibility is very hard to establish but once established, the money will run after you...

Investors are concerned about safety of their money ( and rightly so ) and returns...they are least concerned whether the fund trades short term or long term or invests for dividends etc....and why be upset when someone tells you that trading is speculation /casino....it can be done like casino or it can be done as a very good and highly profitable business.A successful trader does not have to announce that he is successful...people come to know and flock around him...

We cannot blame people for thinking that trading is gambling...every bull market gives rise to self styled and self proclaimed Fund Managers and Market Wizards....who eventually take large bets and go under and run away....that is the experience of people....

I have seen successful traders getting many requests of managing money, bringing a loss making fund in profits...etc...many dont take such offers because they have good size of their own funds to trade.

Hope the above will help you in preparing for your fund....

Smart_trade
 

Mr.G

Well-Known Member
#15
Vikas your comment was extremely biased against FA, you think we don't need discipline or patience? Those words are synonymous with FA, I do not run away from the markets dude. I like dividend income as it increases in the long run. I prefer that method you prefer short term and good for you. But so NOT demean another's method. I just asked why people use technical analysis more, I never asked which is better. I despise people like you. Thank you dan and ST for your valuable tips. I will surely have it in mind.
 

VIKAS 21

Well-Known Member
#16
Mr G.

I have not said anything about F.A.

I have commented about Long term & short term Trading & tried to differentiate between the two...

In my initial day of trading I too used to think that it is not possible to earn in short term trading bcoz i was not successful in it....So I preferred long term trading & earned money in it..
But With practice i started earning in short term trading ....

So these are my personal views , plss dont take it otherwise.....
 

DanPickUp

Well-Known Member
#17
Thank you dan and ST for your valuable tips. I will surely have it in mind.
Well, I mentioned one point which for most want to make money with money people, but not have an idea how to do so, works very well.

You will find that sort of people all over, regardless how much money they have and regardless what business they run. And you can believe me 100% in that. I have been a fund raising manger fifteen years ago and I made a vast experience how that business works.

They will in most cases not ask for any risk reward and any details of strategies used, as they do not have a clue about it. If they have a clue or any idea about how such money is made, they any way are pros or have a large experience in giving away money and they will give you just little money to test you at begin. If you later can show profit again to those people, then you will talk about big money, but at first: No.

It is a trap to think that those people will give you large sums of money to look after. You are lucky when finding some times a person, described above, who will give you huge amounts, at least in the begin of your business. So concentrate on the other ones and do not cheat them. If you not have a social network or a business network from huge money people, those other people will fund your business and will be your foundation for your future. What do they want: Trust. Trust in you and trust in what you say. Thats it.

If you get a big boy from an other business which want to give you huge money, the same here: TRUST. Trust in you and in your personality. If you are able to do that and not cheat them, you will never run out of money.

On a later stage, the post from ST will come in. If you reach that level, then you made it, as you then really have the power and knowledge to satisfy and the proves you need to make those people (Fund managers/ Pension fund mangers/ Share fund mangers / Other kind of money managers) to your friends and business partners.

Take care and good luck on your path to be a fund manager / DanPickUp
 

Mr.G

Well-Known Member
#18
Dan I have alot of questions as this is my only path, I am in first year college and have been studying since 10th to become a manager, I don't have anything to show other than my skills, I don't know how to talk to people to convince them. And FA doesn't. Show results before 2-3 years. Il be old till then. Can my past performance be of help?
 
#19
Mr. G, most humbly I think there cannot even be a comparison between the two. A good intraday/short term trader takes advantage of may be 2-3 swings of a stock each day, making profits while entering both up and down. But a long term trader takes profit once every 6/12/24 months. The difference could be 1000 times. Please correct me if I am wrong.
 
#20
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
First of all TA is popular all over the world...not only in India bcz....Trader like TA........In theory, both are equally important. But in practice, I vote for technical. For one simple reason. You can trade with technical analysis even if you dont know anything about fundamental analysis. The opposite is not true. You cant trade only by fundamental analysis.Please note that there is a difference between fundamental analysis and simply having economical news calendar and avoid trading during major news releases.... Thats actually part of technical analysis itself. Because most technical strategies doesnt perform well at those times......

Professional traders rely mainly on technical analysis, and they use fundamental data to help them to avoid unnecessary losses by learning about the general economical trends, and also the current economical changes that would affect their trades and results. but they dont involve in fundamental analysis, thats a whole different game....... They only review and study the results of fundamental reports. then move on to their charts....
Technical analysis is the superior way for investors and traders to make decisions when trading stocks and options...... For many option traders, technical analysis gives much clearer entry and exit signals for making money in the markets. While its true that some investors dismiss technical analysis as inconclusive and arbitrary, the fact remains that technical analysis (when used properly) has a lot of empirical evidence to support it as a reliable trading tool.
Technical analysis advantages:
1) everyone can learn
2) everyone can reach available tools to learn technical analysis
3) Lots of information about technical analysis over internet
4) More people trade with technical analysis if including beginners and newbies:)
5) Variety of technical analysis tools and software

fundamental analysis disadvantages:
1) not everyone can learn fundamental analysis, but this can be advantage to who can understand fundamental analysis and world events
2) requires technical analysis aswell..........:thumb::thumb::thumb::thumb:
 

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