There has been many discussion about which strategy is better, fundamental analysis or technical analysis. Technical approach has been reinforced by trading software which can be used to predict price based on price simulation, where it uses models for each market without regard the underlying economy or fundamental which driven the market. Several recently developed programs help boil down the maze of economic and fundamental information into a form useful by traders who do not have formal training in economics. These programs help track the impact that economic indicators have on price in various markets. Such software gives traders an easy-to-understand link between fundamental data and price. The technical analysis is easier to use than fundamental. But when the market crash on October 1987, traders started to pay attention on the fundamentals, like unemployement figures, trade deficit, unemployment, and
commodity supply/demand data . With the combination of two strategy, we will have quite a powerfull strategy.
Technical analysis tells us when the price will likely move, while fundamental analysis tells us what stock is good. By combining the two strategy, we can have a good stock which the price will likely move. In this ebook, I want to combine the two stategy to make a new strategy, the combination on fundamental and
technical analysis. A trading plan is needed to win the battle win other investor. You need to know how to choose a good stock, and how to choose a stock which will move in favor of us shortly.

Learn more here.

Tags: Fundamental Analysis, Technical Analysis

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.

Tags: Fundamental Analysis, penny stock, penny stock trading, stock market, Swing Trading, Technical Analysis, Value investing, Warren Buffet

What?
Fundamental analysis is finding the fair value of a company. The calculation is done by using the time of money concept, which is money now is better than money in the future. By knowing how is the cash flow, the in and out of money, you can count for it’s fair price. That’s the difficult thing to do, because you need to predict how much profit will the company make.
How?
The easiest way to do this is to get valuation from your investment firm. They usually have their own research department, and can give you the target price or fair price of a stock. The hard way is to calculate the fair price by your self. To do this, you will need good financial knowledge, and master the industry condition. Choosing big companies with good fundamental, finance performance will bring lower risk, but not always high return. The analysis can be done through economic indicators such as GDP, inflation, interest rate, and oil price.
How’s the performance?
If your calculation and prediction for the fair value of a stock is true, then the performance will be good. If you know that current price is 50, and you believe that the fair price is 100, you might expect 50% increase in the price.
For who?
Fundamental analysis is for people with long term horizon. You need to be patient, waiting for the stock price to rise. If you know that it’s fair value is 100, and currently 50, then just buy the stock and wait until it reach 100, because maybe you know that the company will make a certain profit.

Tags: cash flow, Fundamental Analysis, GDP, interest rate, investment firm, oil price

There has been many discussion about which strategy is better, fundamental analysis or tehcnical analysis. Technical aproach has been reinforced by trading software which can be used to predict price based on price simulation, where it uses models for each market without regard the underlying economy or fundamental which driven the market. Several recently developed programs help boil down the maze of economic and fundamental information into a form useful by traders who do not have formal training in economics. These programs help track the impact that economic indicators have on price in various markets. Such software gives traders an easy-to-understand link between fundamental data and price. The technical analysis is easier to use than fundamental. But when the market crash on October 1987, traders started to pay attention on the fundamentals, like unemployement figures, trade deficit, unemployment, and commodity supply/demand data . With the combination of two strategy, we will have quite a powerfull strategy.

Technical analysis tells us when the price will likely move, while fundamental analysis tells us what stock is good. By combining the two strategy, we can have a good stock which the price will likely move. A trading plan is needed to win the battle win other investor. You need to know how to choose a good
stock, and how to choose a stock which will move in favor of us shortly.

Tags: Fundamental Analysis, stock software, Stock Strategy, Technical Analysis