Technical Analysis For Fundamental Investors

wealthymattersTechnical Analysis of stocks and Fundamental Analysis are often spoken of in dichotomous terms; The former being the sole preserve of speculators and the latter of genuine investors in the stock market.

However, as all fundamental investors know, Mr Market is something of a maniac depressive with wide mood swings ranging from absolute depression to euphoria. So waiting for market prices to reflect  intrinsic values can often be a long and frustrating wait ,costing money in terms of missed opportunity and worse cost actual money if fundamental investors take positions based on their analysis and get the timing wrong. And it is here that Technical Analysis can help fundamental investors by tipping them off on which way stock price might move. Read more of this post

Tracking Beta

Volatility in stock prices is one of the reasons behind the large potential returns from shares,but there are times when stock volatility starts preying on your peace of mind.There are times when you want to see steadiness and predictability in the value of your holdings.So here’s a list of the most and least volatile stocks in India to help you plan your portfolio,


Bob Farrell’s 10 Market Rules To Remember


  • Markets tend to return to the mean over time.
  • Excesses in one direction will lead to an opposite excess in the other direction.
  • There are no new eras — excesses are never permanent.
  • Exponential rising and falling markets usually go further than you think.
  • The public buys the most at the top and the least at the bottom.
  • Fear and greed are stronger than long-term resolve.
  • Markets are strongest when they are broad and weakest when they narrow.
  • Bear markets have three stages.
  • When all the experts and forecasts agree, something else is going to happen.
  • Bull markets are more fun than bear markets.

Protect Yourself From Stock Rigging


wealthymattersIn most cases, when you buy is more important than what you buy. You can make money on the most marginal company if you buy it at the right time; you can lose money in the bluest of blue chips if you buy it at the wrong time.

The right time is when a stock is selling reasonably near the low end of its trading range or at an historically low price/earnings multiple, or when any other trustworthy guideline indicates a sharp reduction in risk. This low entry level provides a safety net dangerously missing at higher prices.

The wrong time to buy for the long-term investor is when a stock is selling near the high end of its trading range or at an historically high price/earnings multiple. – Dick Davis

%d bloggers like this: