Merits for Technical versus Fundamental Approaches to Investing and Trading

The invention of funds, investment, and trading has existed in various forms, but for the purpose of this article, I would like to see a narrower, target specific definition of these terms. Investment in the financial industry is usually understood as a long term of one to ten years. However, transactions may constitute more than milliseconds. The purpose of investment and transaction is the same, to earn money or to hedge the risk. The problem to be studied in this paper is the advantage of technology and basic method.

Basic analysis is a traditional way to study company fundamentals, such as income and expenditure, market positioning, annual growth rate, the possibility of trading asset technology. On the other hand, technical analysis will only check past price changes and changes. Technical analysts examine historical prices and use data at various time intervals to define price behavior patterns to predict future price movements. Therefore, there is an inherent correlation between pricing assets and trading assets that can be used to determine entry and exit times for each asset.

The invention of funds, investment, and trading has existed in various forms, but for the purpose of this article, I would like to see a narrower, target specific definition of these terms. Investment in the financial industry is usually understood as a long term of one to ten years. However, transactions may constitute more than milliseconds. The purpose of investment and transaction is the same, to earn money or to hedge the risk. - From a technical perspective First of all, I really did not understand the concept of this task. I think this is easy. I paint adhesive and write a word on a piece of construction paper. After all, the only adhesive is sugar and water, and the paper is only trees, it sounds natural. However, after I sat and thought about, the paste and paper were far from natural. Someone mixes the adhesive, puts it in a container, and ship it to the shop.

As you can see from the above four definitions, when you hear the term "probability" in trading and investment, people who want to add quantitative preferences to specific methods or basic analytical elements may exploit it . In rare cases, it is reasonable to use the term probability when analysts follow formal rules. Furthermore, expectation is far more important than probability, but most of this concept lacks sufficient samples. Obviously, expectation is related to probability. Because it is the average of the distribution of trade results. For details of expectation related issues, please refer to my book "Technical Analysis Deception".