Today, we’re going to cover an interesting topic. A topic which we have covered individually before but now we’re going to compare the two against each other. Yes. We will be making a comparison between technical analysis VS value investing.
First of all, what is Technical Analysis?
It is the art of trading profitably in the market through analyzing chart patterns. An individual makes use of different charting technical tools such as trend lines, fibonacci levels and etc. It can also be called speculation.
And what is Value Investing?
Value investing is more of long term trading or long term investment in the market. Investors profit by buying stocks at a discounted price after calculating how much a stock is worth based on the company’s past financial records. Buying a business that will give you good returns instead of just looking at them as ticker symbols.
Now, let’s put the both of them together and do a comparison with the help of the photo below:
Although we highlighted that value investing requires high patience, it is also much needed in technical analysis as well. You’ve got to decide and see which is more profitable for you when attempting to make money from the markets.
More on technical analysis:
If you’re quite an emotional person and unable to control it, technical analysis may not be suitable for you. Yes. It may not be suitable for you. This is because as soon as you have some losing trades, you feel like taking revenge on the market and therefore you trade more than what you can afford to lose. Sometimes its also because you are eager to quickly regain your losses and try to get a quick huge profit. In the end, you’ll end up losing even more and your vicious cycle has just began.
There are many who have profited by technical analysis but fail to sustain their profits. They become confident and feel great once they have profited and done very well for numerous trades. Soon the winning streak will stop and if a trader fails to control his emotions, his profits and capital is guaranteed to be wiped out soon entirely.
To find out more on an available technical analysis course:
This is probably suitable for anyone and everyone. Especially for those who do not have much time to be in front of the computer. Only a bit of homework and research needed to fundamentally anaylse a particular stock. After that, you just have to calculate the buy price that the stock is worth and wait. A lot of patience and discipline is needed if you want to see nice returns from the market. We recently also highlighted a great course that people can attend to find out how to apply this method. This method is also well-known to be the Warren Buffet method. In the course, people are also taught how to sell options to gain passive income monthly.
To find out more on value investing: