The Truth About Technical Analysis to Win on the Stock Market by Álvaro Cid

Author:Álvaro Cid
Language: eng
Format: epub
Publisher: Álvaro Cid
Published: 2020-08-16T00:00:00+00:00

If the fundamental value of the company that we have determined the price is higher than the current stock market, we must BUY. And if the fundamental value of the company that we have determined is less than the current stock market price, we must SELL. Why? Because fundamental analysts think that in the short-mid-term, the psychology of investors alters the value of the company, and its price remains equal. It is something like saying the investors are speculating too much up or down. For reasons, the value of the company and that distorts the reality, where the value must match the price.

Now, if we knew perfectly about both types of analysis, would we have to decide on one of them? NO. The wisest thing to do it is to decide, fundamentally speaking, in WHAT to invest (By using the necessary techniques to recognize the companies with a fundamental value higher than the current price). At this point, we already know that in the long term, it will rise until the price reaches its fundamental value.

Technically speaking, then we must decide WHEN to invest. Now that we know that a certain company is going to rise, we have to decide when to buy it. After our incessant fundamental analysis, we can go to a broker like crazy and buy it at a bad price, or do a technical analysis of the situation, and wait for a few months, weeks, or days to buy when it is at the bottom of the chart, and take advantage of that supply and demand that makes prices oscillate more than it should.

Differences between the different analysts

Study and learning time

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