tailieunhanh - Trading in the Zone Master the Market with Confidence Discipline and a Winning Attitude_2

Tham khảo tài liệu 'trading in the zone master the market with confidence discipline and a winning attitude_2', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | CHAPTER 1 THE ROAD TO SUCCESS FUNDAMENTAL TECHNICAL OR MENTAL ANALYSIS IN THE BEGINNING FUNDAMENTAL ANALYSIS Who remembers when fundamental analysis was considered the only real or proper way to make trading decisions When I started trading in 1978 technical analysis was used by only a handful of traders who were considered by the rest of the market community to be at the very least crazy. As difficult as it is to believe now it wasn t vety long ago when Wall Street and most of the major funds and financial institutions thought that technical analysis was some form of mystical hocus-pocus. Now of course just the opposite is true. Almost all experienced traders use some form of technical analysis to help them formulate their trading strategies. Except for some small isolated pockets in the academic community the purely fundamental analyst is virtually extinct. What caused this dramatic shift in perspective I m sure it s no surprise to anyone that the answer to this question is very simple Money The problem with making trading decisions from a strictly fundamental perspective is the inherent difficulty of making money consistently using this approach. For those of you who may not be familiar with fundamental analysis let me explain. Fundamental analysis attempts to take into consideration all the variables that could affect the relative balance or imbalance between the supply of and the possible demand for any particular stock commodity or financial instrument. Using primarily mathematical models that weigh the significance of a variety of factors interest rates balance sheets weather patterns and numerous others the analyst projects what the price should be at some point in the future. The problem with these models is that they rarely if ever factor in other traders as variables. People expressing their beliefs and expectations about the future make prices move not models. The fact that a model makes a logical and reasonable projection based on all the relevant .