MitchSand's  Instablog

MitchSand
Send Message
Founder of Mitch Financial
My company:
Mitch Financial Website: We Believe In Financial Balance
  • Fundamental V. Technical Investing 0 comments
    May 26, 2012 6:50 PM

    Fundamental and Technical investing are both viable strategies when investing in the stock market. They both have very good advantages for some investors and also disadvantages. So what I personally find successful in investing is to cross breed the two different strategies to get a feeling of a stock from a fundamental and technical.

    TECHNICAL INVESTING--- Technical investing is good for looking at trends in a stock, and by looking at these historical trends, if a stock is going up but starts going down you have two things that help you. Using these historical trends you can see if the stock will come out of the dip (and if that is the case you should buy it) or if it will continue to go down because the stock was overpriced. You can eliminate options using what the stock used to be worth or "Historical Trend Investing" as I like to call it. But the down side of focusing too much on Technical Investing is you don't know if the company bought another company (making its earnings go down) or annual reports and don't know when to pull out of the stock. Also with technical investing, the historical trends might not continue and all the sudden you see the stock drop before your eyes. So technical investing does have many downsides and up-sides but it all depends on how much risk that individual investor will take.

    FUNDAMENTAL INVESTING--- Fundamental investing is reading articles on the stock and annual reports and the companies main earnings. Fundamental investing is good because it involves situations the company is in and those circumstances allow an investor to either sell or hold. But a problem with fundamental investing is, that it is hard using that strategy to know when to buy a stock. Because you need that technical investing to know when to buy and fundamental to know when to sell. Because when you fundamentally invest you only look at your current stocks.

    So from the fundamental investing helping to sell or hold and the technical investing to help buy, if you (the individual investor) can mix these two successful investing plans and have an investment plan like buy and hold or dollar averaging with these investment strategies then you will be very successful in the stock market.

Back To MitchSand's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.