Technical V/s Fundamental

When I travelled in Local trains of Mumbai, I wondered all time stock brokers and their dealers travelling in train pondering over news paper with stock pricing. Discussing about company's stock perofrmance.

Before Harshad Mehta and Ketan Parekh scam, allmost every third commerce student bunks college for afternoon session and heads for Stock Market. Guys are "Share Khans" ( I wonder SSKI has thought of it in same manner) talk about Tata Steel and Reliance in single breath. I use to take them as god of "MOvers and Shakers".

Circa 2004, I know about Reuters, BloomBerg and basic differences of NYSE and NASDAQ (Atleast at attribute levels) :>)
I understand the power of TEchnology. Their comes "TECHNICAL ANALYSIS". Visit Website of BSE/NSE or online stock broker. Login and download the Java applet fully loaded with trendline graph of SENSEX. Apply complex analysis and bingo. ALT TAB and make your stock purchase. Wait for your profit. Impressed of Warren Buffet's approach of Value investing.

But, after my MBA subjects on ECONOMICS and Financial accounting, I read Balance Sheet of company with same interest as Sunday Tabloid - of course sipping Italian blend Coffee. I juggle with Operating margin, PBDIT, PAT and understand Top line and bottom line impacts same as Warne or Murli's Spin and line. I understand biggies call it as "FUNDAMENTAL ANALYSIS".

I feel best approach is mix of Both just as Coffee and Milk in Cuppocino in Barishta. I consider my childhood heros "Share Khan" living in Q Culture. They hunt the Quote using technical analysis and add speculations.

Let us seek freedom from such Q Culture and start our journey to V Culture or Value Culture. But before we start, I feel it is better to understand the territory that is going to remain strong i.e. TEchnical Analysis. I come across www.equis.com 's education portion on technical Analysis. Few glimpse of same is as given below.

he term "technical analysis" is a complicated sounding name for a very basic approach to investing. Simply put, technical analysis is the study of prices, with charts being the primary tool.

The roots of modern-day technical analysis stem from the Dow Theory, developed around 1900 by Charles Dow. Stemming either directly or indirectly from the Dow Theory, these roots include such principles as the trending nature of prices, prices discounting all known information, confirmation and divergence, volume mirroring changes in price, and support/resistance. And of course, the widely followed Dow Jones Industrial Average is a direct offspring of the Dow Theory.

Charles Dow's contribution to modern-day technical analysis cannot be understated. His focus on the basics of security price movement gave rise to a completely new method of analyzing the markets.

For more please read at http://www.equis.com/Education/TAAZ/

Happy Investing......

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