Getting rich from stock market
By admin on November 9th, 2008
If you want to get rich from the stock market, how do you do it? What strategy will you use? Is it value investing that warren buffet use? Technical analysis, or penny stock trading? All have different characteristic. What I know is value investing / fundamental analysis has lower risk and lower return. While technical analysis, and penny stock trading tend to be more risky but have higher return if you guess it all right. With value investing you can enter the market within a long period, like weeks. But in technical analysis, and penny stock trading timing is very crucial. You have to enter quick and exit quick.
What we can learn from this is, if you have lots of money like buffet had use fundamental or value investing. But if you just have small money, trade with technical analysis, buy penny stock, or swing trading. Once you have more money, that your movement will affect the price, change your strategy with fundamental analysis or value investing.
Swing Trading » Getting rich from stock market
[...] Technical Analysis Trading wrote an interesting post today onHere’s a quick excerpt If you want to get rich from the stock market, how do you do it? What strategy will you use? Is it value investing that warren buffet use? Technical analysis, or penny stock trading? All have different characteristic. What I know is value investing / fundamental analysis has lower risk and lower return. While technical analysis, and penny stock trading tend to be more risky but have higher return if you guess it all right. With value investing you can enter the market within a long period, like [...]
GK India
Both Technical and Fundamental analysis have own drawbacks.
In short run stock prices are governed by liquidity. But like wind, at any moment it can change the direction. This is what we intend to capture through technical analysis.
As Warren Buffet has mentioned that in ideal case stock prices should reflect the underlying intrinsic worth of the stock/business. But, most of the time it does not happen. This is limitation of fundamental analysis.
Apart from all the analysis, having good temprament is the key to make money in stocks.