FA vs TA

FA vs TA

Postby Cheng » Fri Mar 05, 2010 9:07 pm

I have a question for everyone.

If I use company fundamentals to screen for stocks and yet I also do look at charts, am I considered a value investor? If no, since when value investors can't use charts? Is there a rule that says value investors cannot use charts? How about comparing historical PE against share price plotted on a graph? No charts at all?

During my 3 years of investing and sticking to value principles from 2007 till present, my portfolio has never landed in the red. Not even in 2008, am I just lucky? Maybe. Value investing has proven to me as a very good foundation to start learning how to invest. However, one also should not avoid looking at charts, bars, graphs or whatever records/information you can find.

For TA folkes, you mean you do not use any fundamental information at all? Money supply, interests rates, gdp, industry figures, company earnings etc? During the Dubai crisis in 2009, few days before the news came out, did your indicators or charts say sell? When this type of once in a blue moon thing came out, all charts/indicators are worthless. You still have to depend on fundamentals right? Jesse Livermore to some extent also use some fundamentals to trade commodities, no?

Must FA and TA always be independent of each other? Is FA totally useless? Is TA redundant? :lol:

The final question, for purely TA people, will FA help you to become a better investor? For value investors, will TA help you to improve as well? :)
"The really big money tends to be made by investors who are right on qualitative decisions." Warren Buffett

"Risk no more than you can afford to lose, and also risk enough so that a win is meaningful." Ed Seykota

Scan with FA, Time with TA, Volatility is my Friend. :)
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Re: Value Investing 2 (Jan 09 - Feb 10)

Postby winston » Fri Mar 05, 2010 9:14 pm

Ha Ha Cheng ...

There's no need to worry what color the cat is, as long as it can catch the mice ;)

My style is rojak but I'm not sure whether it's good enough to catch the mice :?

Take care,
Winston
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Value Investing 2 (Jan 09 - Feb 10)

Postby kennynah » Fri Mar 05, 2010 9:16 pm

agree.. no need to be so black and white... inflexibility is not a desirable trait for traders/investors...

use both FA/TA and WA (whatever analysis) lah...
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Re: Value Investing 2 (Jan 09 - Feb 10)

Postby Cheng » Fri Mar 05, 2010 9:16 pm

winston wrote:Ha Ha Cheng ...

There's no need to worry what color the cat is, as long as it can catch the mice ;)

My style is rojak but I'm not sure whether it's good enough to catch the mice :?

Take care,
Winston

Hey Winston,

Haha... Yea I know, just something for everyone to think about. :)

Cheers!
Cheng :D
"The really big money tends to be made by investors who are right on qualitative decisions." Warren Buffett

"Risk no more than you can afford to lose, and also risk enough so that a win is meaningful." Ed Seykota

Scan with FA, Time with TA, Volatility is my Friend. :)
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Re: Value Investing 2 (Jan 09 - Feb 10)

Postby iam802 » Fri Mar 05, 2010 9:19 pm

Cheng wrote:The final question, for purely TA people, will FA help you to become a better investor? For value investors, will TA help you to improve as well? :)


The answer to your question lies in timeframe.

Traders (not sure if they are pure TA folks???.....because there are some like myself also use gut feel), trade in different timeframe.

Can one really use FA to do intraday?

Can one really use FA to do swing trades?

I can only say different tools for different timeframe.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
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Re: Value Investing 2 (Jan 09 - Feb 10)

Postby Cheng » Fri Mar 05, 2010 9:22 pm

iam802 wrote:
Cheng wrote:The final question, for purely TA people, will FA help you to become a better investor? For value investors, will TA help you to improve as well? :)


The answer to your question lies in timeframe.

Traders (not sure if they are pure TA folks???.....because there are some like myself also use gut feel), trade in different timeframe.

Can one really use FA to do intraday?

Can one really use FA to do swing trades?

I can only say different tools for different timeframe.


I think the key is to be flexible, cover your loopholes in your strategy. If your fortress wall is weak do you not strengthen it? If your knife is blunt, sharpen it! :lol: Both schools of thought have their flaws, mend it or modify it. :D
"The really big money tends to be made by investors who are right on qualitative decisions." Warren Buffett

"Risk no more than you can afford to lose, and also risk enough so that a win is meaningful." Ed Seykota

Scan with FA, Time with TA, Volatility is my Friend. :)
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Re: Value Investing 2 (Jan 09 - Feb 10)

Postby winston » Fri Mar 05, 2010 9:28 pm

iam802 wrote:1) Can one really use FA to do intraday?
2) Can one really use FA to do swing trades?


Ha Ha ... I dont really use TA to scalp or swing :P
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Value Investing 2 (Jan 09 - Mar 10)

Postby iam802 » Fri Mar 05, 2010 9:29 pm

I see it the other way. (>> Nothing against FA, neither am I supporting TA here).

I see it as being focus... 'work on your strengths, and avoid areas that you are weak'.

Just like playing chess. Different pieces have different strengths and weaknesses.

We want to exploit the strengths.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
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Re: Value Investing 2 (Jan 09 - Feb 10)

Postby Cheng » Fri Mar 05, 2010 9:32 pm

winston wrote:
iam802 wrote:1) Can one really use FA to do intraday?
2) Can one really use FA to do swing trades?


Ha Ha ... I dont really use TA to scalp or swing :P


I use TA to scalp on the swing in forex. Only 2 lines are used, Support and Resistance. Ok I shall not deviate from the thread topic haha...
"The really big money tends to be made by investors who are right on qualitative decisions." Warren Buffett

"Risk no more than you can afford to lose, and also risk enough so that a win is meaningful." Ed Seykota

Scan with FA, Time with TA, Volatility is my Friend. :)
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Re: Value Investing 2 (Jan 09 - Mar 10)

Postby Cheng » Fri Mar 05, 2010 9:33 pm

iam802 wrote:I see it the other way. (>> Nothing against FA, neither am I supporting TA here).

I see it as being focus... 'work on your strengths, and avoid areas that you are weak'.

Just like playing chess. Different pieces have different strengths and weaknesses.

We want to exploit the strengths.


Good advice. :)
"The really big money tends to be made by investors who are right on qualitative decisions." Warren Buffett

"Risk no more than you can afford to lose, and also risk enough so that a win is meaningful." Ed Seykota

Scan with FA, Time with TA, Volatility is my Friend. :)
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Cheng
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