Talk:Investing/Stock market

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I agree with cross referencing. Technical analysis is more often focused on short term movements in stocks and generally unrelated to the underlying health of the company represented by the stock. Brokers profit more from technical analysis than stock traders. Jmoorejr

yes technical analysis would make it more valuable.

No, they should be cross referenced only at the beginning of each because they represent diametrically opposed investing methodologies. Hard core technicians sometimes consider fundamental analysis a waste of time. Hard core fundamentalists consider technical analysis "Voodoo." Either view can be successsful alone or in combination. The problem is how much weight to give to each and even that relationship is subject to large and frequent revisions.

There are some who believe that fundamentals should dictate what to buy and technical anlysis when to buy. While I believe the two should be used together for selection as well as timing of investments it is too much like trying to combine physical science with astrology or faith.

The best approach is to introduce each methodolgy as one of many alternatives and state that each has strong advocates. I know one investor who makes selections based on the timing of storage activities by squirrels. Then there are the annual articles touting the talents of monkeys with dart boards exceeding professional money managers results. As a fan of both TA and Fundies I confess to buying occasional lottery tickets even though I know my chances of being struck by lightening are six times better than winning.