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View Full Version : Fundamental vs. Technical Analysis



EightCounts
07-11-2007, 09:53 AM
From what I understand Fundamental Analysis is looking at the numbers of the company such as P/E, earnings, balanace sheet, etc and how the economy is doing in resect to GDP % increase or decrease. And that Technical analysts use charts to come up with what they like and dislike.

I know that Cramer is a Fundamental analysis type of guy from his books and doesn't like using charts or "momentum" trading. He says that you will lose money trying to trade with the momentum.

I see alot of people here who use momentum/charting as their style and would like to know how it works out for them. Please correct me if I am wrong and thanks for any info you could provide.

aiki14
07-11-2007, 02:36 PM
I think you have it about right.
I don't see why you have to be one or the other. I tend to use a more fundamentalist approach the further out my time frame. Core holdings and long term investments I am 100% fundamental. Intraday or very short term I use technical screens and news. I think it's a good idea to back up technical analysis with fundamental analysis. If I see two equally technically attractive stocks I'll choose the one with better fundies whenever possible.