What are some of the most common elements in the Universe?
Hydrogen, helium, oxygen, carbon, and nitrogen.
What are the most common elements we are made of?
Hyrdrogen, oxygen, carbon, and nitrogen.
No. We are not "special" or unique.
We are made up of stardusts.
Once we can appreciate and understand the true nature of things, philosophically and psychologically, we may begin to see and treat things differently from before.
Its as if the wool that others are trying to pull over our eyes has been lifted...
Technical Analysis
What are the basic building blocks of
Price and time.
Most people would include volume too.
But in recent years, high frequency trading has messed things up a bit. So volume analysis its not a simple read as before...
With just 2 simple price and time factors, we can create 1001 indicators and oscillators. Like the many sub denominations in all religions.
If you are confused, using too many indicators, or arguing with others your one is bigger...
What's the point?
Might as well look at the basic building blocks directly. And if you are entrepreneurial and creative, you can invent your own technical indicator!
Start your own church and your followers will tithe you.
Now that's how you make money off technical analysis!!!
Fundamental Analysis
What's the language of business?
Financial accounting.
If you want to use fundamental analysis, shouldn't you be conversant with the language of business?
No, you don't have to take up bookkeeping or financial accounting. Not everyone likes to deal with numbers...
Wait a minute.
Can you explain to me why you swear by fundamental analysis again?
But for those who want to have the competence to read and analyse financial statements themselves, there are plenty of financial accounting or business finance courses for non-accounting professionals/graduates out there offered by our polytechnics, professional bodies, and universities.
These are usually one year part-time evening programmes with exams kind of formal classroom courses.
Perfect for those of you who like to collect paper qualifications and put "abcs" behind your names in business cards.
As for those who don't like formal learning environments, there are numerous books like those dummies series where they explain complex financial accounting and business finance concepts in an easy to digest format.
Cannot understand as in catch no ball?
Well, there's always voodoo for you as plan B!
You think why technical analysis is so popular?
The "minimium PC requirement" is much much lower... LOL! (Don't hit the face!)
Exception is probably Elliott Wave Analysis. I think you need a degree to understand it!!!??? Then again, its probably just me...
And if you still don't understand cartoon lines with crayon colours, could that be a sign investing or trading not for you?
May I introduce you to Toto, 4D, or Big Sweep instead?
Idiot.
How come Singapore Pools got no affiliate programme to reward me for introducing customers to them?
Oh!
Silly me...
Monopoly.
Can follow Forum for "TA" analysis. No need to DIY. Just identify which chartists to follow. :-)
ReplyDeleteCW,
DeleteThe same can be said of those so called DIY "fundamental retail investors" - be it value, dividend, or growth.
When all they do is follow the ass of their favourite gurus, bloggers, or famous investors.
There's so many apps or subscription services out there that will tell us which famous investors, hedge or mutual funds have bought or sold what...
If we want to do that, doesn't it make more sense to give our money to these hedge or mutual funds to invest for us?
I like to poke those "Look ma! No brains needed!" passive investors, but at least they are intellectually more honest!
LOL!
Eillot waves can have many interpretations from.the same.chart
ReplyDeleteOops. Same as fa, we see dufferent things from.the same set of numbers.
In the end, we play with our own money, we know what we are doing can le. No need anyone to Understand. We know if we are right when things dun go our way after we set perimeters.
No need to convince anyone as no one is able to convince me too. So faIR and square
Sillyinvestor,
DeleteWant to do an experiment?
In your next Stock Analysis post, purposely write some factual errors that differs from the annual report or released quarterly statements.
See how many can spot it ;)
No need to convince anyone. There are many "fundamental retail investors" who never read and analyse the released financial statements personally.
A summary of a summary that's "stolen with pride" from sell side analysts reports will do.
Huh? Like that also can?
LOL!
Btw 4D can have your cult too.
ReplyDeleteSome.people swear that u can get winning numbers .... although some methods need to visit some place in the middle of the night. I scare. No thanks. No lack of followers OK.
My ex colleague used to work at one of the animal parks in Singapore. Every night he need to check every tram, every visitors etc are out, accounted.
He saw ...
Not just him. Then rumors spread one of his colleague tried to get no. From ...
He strike! Twice!
When news spread, a crowd gather, but ... no longer appear.
Man greed might be more scary than...
Sillyinvestor,
DeleteThese kind of stories we hear a lot...
If you say its your personal experience, I can practice my "Trust but Verify" on you.
Since its another one of those - it happened to my friend, my ex-colleague, my neighbour...
I can only smile.
Nope. I won't turn around and tell others my blogger friend told me this...
That's how rumours/urban legends/fake news spread ;)
As a DIY stock investor, I have never subscribed to vendors who sell signals. One might as well pay REGULATED money managers to manage our money to save the execution trouble and reduce the scam risk than pay UNREGULATED vendors to give us signals on how to manage money. The financial signal selling industry is full of scammers who are protected by the standard disclaimer that investment is risky and no guarantee that what they are selling will work. This zero accountability attracts lots of scammers to the investment industry in general. When it comes to managing my own money, I follow the principle of "help your own money" and not rely on third party. However, it makes sense to outsource this work to REGULATED professional money managers for people who have little interest in the financial markets.
ReplyDeletehyom,
DeleteSome of the little lies we tell ourselves don't make much sense right?
DIY means we enjoy the craft of investing or trading. We can and should come up with our own investing thesis and trading ideas.
If we just want the fish but no interest in the craft itself, then we can either outsource this work to other professionals.
Just like how some are willing to pay top dollar for integrated medical plans so as to access the best doctors, you don't mind to pay for performance ;)
Or alternatively, there's the low cost passive indexing way for those who prefer cheap, cheaper, cheapest!
And perfectly fine with, "Look ma! No brains needed!"
Above 3 paths are for those who are more intellectually honest with themselves.
The rest I guess "honestly" believe others will help them get rich!?
Technical indicators are useful when they simplify the interpretation of price action. They are worse than useless when they add noise to the already noisy financial price signals.
ReplyDeleteData for fundamental analysis of currencies is much noisier than financial statements of companies. There are too many variables and movable parts in an economy to be analyzed or even have accurate data to begin with. I think that fundamental analysis for currencies can be simplified by analyzing actions of central banks instead of entire economies. I have limited experience with forex, though.
So many bloggers focus on analysis part as it is teachable as an academic and also can show their impressive power of deep analysis.
Deletehyom,
DeleteExactly. A good technical indicator or chart should illuminate rather than add to the confusion! LOL!
I use them because I am cognizant they are voodoo.
Like voodoo, they'll work some of the times!?
Easier if we see them as "grey" rather than "black and white" ;)
When it comes to fundamental analysis of different asset classes, its not a question of which is "easier" - its more a case of which asset class is more "in sync" with our personality and/or psyche.
The best way to know is "crash got sound".
No try how to know?
I do try and experiment with new instruments and ideas. I'm omnivore :)
CW,
DeleteSo far only the old Wallstraits ang moh got the guts to show his portfolio "live" - that's the execution of the theory or analysis part ;)
Many do the same, only when the portfolio is green. Once red ink starts to show, they conveniently forget to update their portfolio...
Its hard to convince and attract new cannon fodder when you show the more you invest, the more you lose...
LOL!