Saturday, August 14, 2010
Fundamental vs. Technicals
I difference between trading and investing as very similar as the difference between fundamentals and technicals. Technicals are tools mostly used by traders, while fundamentals are mostly used by investors. However, it is unwise for either a trader or an investor to ignore one or the other. The best decisions of a trader or investor are made using both fundamentals and technicals. The simple difference is time. In the short term technicals can be more important than fundamentals, but in the long run fundamentals are always more important. In the long run the stock market follows earnings.
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