Mindstorm, You are beyond Sorhai, OMG..

http://markettruthseeker.blogspot.com/

Mindstorm wrote:

Wednesday, January 21, 2009

Fundamental Analysis vs Tread Analysis

I say man : Technical Analysis lah! What the fxxk is that Tread Analysis?

FA and TA both depends on INFORMATION. Information comes from the underlying company and also from the perception/formulation of more information generated by the market. In other words, price of a stock is a function of both fundamentals and perception.

I say man : ??????

Fundamentals being the more important because without it there is no stock.FA tries to acertain the accurracy of the information coming out from the company and capitalize on the information discrepacy between the companies information and how the market evaluate it.

I say man : ?????? I really don't know what are you trying to say.

TA however assumes that the company is doing its job of making money and staying in existence but focus on the perception part of the price which is volatile. FA tries not to make such assumption but focus on ensuring the the company is doing so.If the company is doing its job then the price is long term bullish.If the company is not doing its job then the price is long term bearish.But either one, along the way the price goes up and down(provided there is enuf vol) due to perception and TA tries to profit from these movements.

I say man : ?????? You really need to brush up your English. Walaoeh!!!

TA depends on FA for security and movement.FA depends on TA for maximum profit. FA takes advantage of TA.Both depends on itself to work. Huh? Yes, this is the theory of reflexivity by Soros. TA and FA information is both generated by humans and they themselves affect the price.When FA fails, it is usually because of the inaccuracy of the companies information. At these times, TA can be useful because it can pick up certain clues(due to action of insiders and relatedparties that knows these information beforehand). FA also fails in bear-ing market.

I say man : ?????? What the fxxk...

On astrology and markets. Astrological information may have certain truth in it. But the write up aboutit causes an affect greater than the real affect it actually has(In other words, mainly crap). The fact that many ppl believe in it causes it to be true.(You believe it is a bad year to buy, then you dont buy. If enuf ppl dont buy then the market will be depress) This is also true for TA, the fact that many traders believe in TA also can cause the believe to manifest.How true is the statement that astrological is played up more than it actually is true?This is because when it comes to natural disasters(which cannot be affected by believe),astrology always play backhand smash. After it happens, a lot of crap comes out saying how astrology indicated that it will happen. But never can astrology call a forehand, otherwise everybody can avoid natural disaster.

I say man : Thank goodness. At least I see what you are trying to shoot at. Very funny, hahahaha.

If you think you understand FA, go read some Berkshire Shareholder letters by Buffet and ask yourself you really understand them or not.

If you think TA is crap, well, you don't even know TA stands for Technical Analysis and you have already come into conclusion.. OMG!!

I am not laughing at your English or FA/TA Knowledge actually, I am laughing at your Ego. You have a Ego so big that you are not going to learn, and yet you wanna express your opinions to the entire universe. OMG, you have a long way to go. Good luck my friend, you need it. Sorhai!!!!