TA or FA or just Follow?

There are three types of trading mentality:

1) TA - Technical Analysis
2) FA - Fundamental Analysis
3) Just Follow - Gamble or too lazy to run any analysis

Most investors are against type number 3. For Type 1 & 2, there is a big debate going around the world .

To me, everyone is trying to predict which stock that will be going up. That is the whole idea. Nobody wants to buy a stock that will go down and down. There is no point to argue about which type is better. But I notice something wrong with TA folks who always argue about their superiority. I later found out they have their own agenda of doing so:

1) They want quick money
2) They want other to follow (the more people who follow you, the chance of the stock to go up increases)
3) They own blog(s) to make money from advertisement (the more the reader, the more the income, some even sell e-books or collect illegal member fees)
4) They understand the fundamental of trade: demand up, price up

Those type of TA folks are preying on new comers to stock market to earn their trust. If they are successful in building their follower base, whatever buy call they make, the price will go up. Besides making money from advertisement, they make big money from stock market as well.

TA is just a way to look at the trend. It is able to detect hidden news that only insiders know. For certain stocks, if their fan base is using TA a lot, they tend to be accurate. Is it able to predict the future? Yes and no. Yes, if someone is trying to push for the stock they ran TA on it and the rest will get the same bullish signal. No, if no one wants to push for it. There are so many stocks to choose from. If a few TA followers spot on the same stock, the stock tend to go up as the demand goes up. That is why TA followers need to spread TA news around to make they TA technique work.

To me, it is a bit unethical although there is no law broken.



My rule of thumb in stock market:
1) No money fall from the sky
2) The demand goes up, the price will go up


Today update:
Malayisan stock market is holding up quite well despite there is a panic in Japan and Hong Kong. Singapore and Malaysia are sharing the same Chinese New Year bull force refusing to drop a lot. No sale today.