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Exactly.
TA is more about reaction.
See where the price is going, and react to it.

I think fundamental analysis is all about prediction.
Prediction is when you think a company is undervalued, and you predict that one day it will trade at what you reckon is fair value. If it doesnt ever go up to your value, then you think that the market is stupid (!) and because you dont like losing money and its not a loss until you sell you end up holding a dog forever. Or it becomes bottom drawer until it at least breaks even. Or even better, buy on the way down to reduce average price After all, if it was cheap at $X then its even cheaper at $X-40% !!

Pretty much sums up fundamental analysis for me

<blockquote data-quote="nizar" data-source="post: 153032" data-attributes="member: 2591">Exactly.TA is more about reaction.See where the price is going, and react to it.I think fundamental analysis is all about prediction.Prediction is when you think a company is undervalued, and you predict that one day it will trade at what you reckon is fair value. If it doesnt ever go up to your value, then you think that the market is stupid (!) and because you dont like losing money and its not a loss until you sell <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite2" alt=";)" title="Wink&nbsp; &nbsp; ;)" loading="lazy" data-shortname=";)" /> you end up holding a dog forever. Or it becomes bottom drawer until it at least breaks even. Or even better, buy on the way down to reduce average price <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite8" alt=":D" title="Big Grin&nbsp; &nbsp; :D" loading="lazy" data-shortname=":D" /> After all, if it was cheap at $X then its even cheaper at $X-40% !! Pretty much sums up fundamental analysis for me <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite6" alt=":cool:" title="Cool&nbsp; &nbsp; :cool:" loading="lazy" data-shortname=":cool:" /></blockquote>

[QUOTE="nizar, post: 153032, member: 2591"] Exactly. TA is more about reaction. See where the price is going, and react to it. I think fundamental analysis is all about prediction. Prediction is when you think a company is undervalued, and you predict that one day it will trade at [B]what you reckon [/B]is fair value. If it doesnt ever go up to your value, then you think that the market is stupid (!) and because you dont like losing money and its not a loss until you sell ;) you end up holding a dog forever. Or it becomes bottom drawer until it at least breaks even. Or even better, buy on the way down to reduce average price :D After all, if it was cheap at $X then its even cheaper at $X-40% !! Pretty much sums up fundamental analysis for me :cool: [/QUOTE]

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