Thank you. Good and came at the right time. In summary, am I right to say you use FA to shieve out good companies and use TA for entry?
(1) Do you buy even in a downtrend since you will never be 100% sure when is the bottom;
(2) How do you exit if the fundamental remain unchanged but the share price has downtrend or lose say 20% to 50%. And bear in mind Financial Report are not updated to investors monthly; are you going to wait for quarterly report before taking action and risk it losing more by the day? Or are you going to talk yourself out of exiting in downtrending since fundamental remain unchanged. If not; what is your TA rules to exiting since fundamentally remain the same?
Reply to @fayewang : Thanks @fayewang. for most people it is easy to enter but hard to exit as we have a tendency want to talk ourselves out of it. It is not advisable to enter when it is obviously on the downtrend especially on bigger time frame knowing the momentum of market sentiment will push you down further no matter how good is the fundamental unless one has a lot of capital to wait it out. I believe market moves by sentiments and emotion rather than purely intrinsic values; it is safer to trade in the direction of trend although TA are all lagging indicators but it is more or less capture the market sentiments. But a good knowledge in FA is a big plus as we surely want to hold for longer term a good company. FA is hardwork. Perhaps you can write how to quickly scan a financial report.
Thank you. Good and came at the right time. In summary, am I right to say you use FA to shieve out good companies and use TA for entry?
(1) Do you buy even in a downtrend since you will never be 100% sure when is the bottom;
(2) How do you exit if the fundamental remain unchanged but the share price has downtrend or lose say 20% to 50%. And bear in mind Financial Report are not updated to investors monthly; are you going to wait for quarterly report before taking action and risk it losing more by the day? Or are you going to talk yourself out of exiting in downtrending since fundamental remain unchanged. If not; what is your TA rules to exiting since fundamentally remain the same?
Reply to @fayewang : Thanks @fayewang. for most people it is easy to enter but hard to exit as we have a tendency want to talk ourselves out of it. It is not advisable to enter when it is obviously on the downtrend especially on bigger time frame knowing the momentum of market sentiment will push you down further no matter how good is the fundamental unless one has a lot of capital to wait it out. I believe market moves by sentiments and emotion rather than purely intrinsic values; it is safer to trade in the direction of trend although TA are all lagging indicators but it is more or less capture the market sentiments. But a good knowledge in FA is a big plus as we surely want to hold for longer term a good company. FA is hardwork. Perhaps you can write how to quickly scan a financial report.
Extremely well written!
Good read!