Gulshan wants help:
Why is that you are using fundamental terms in the blog for past few weeks?
If this indicate that TA should be based on fundamentals?
I am confused?
Follow TA or Fundamentals or both of them.
My Notes: Help has come quickly, so do not worry. I am quoting below Charles Dow, known as the father of classical technical analysis:
In an editorial written in the Wall Street Journal, in 1901, he said :
"The market is not like a balloon plunging hither and thither in the wind. As a whole, it represents a serious, well-considered effort on the part of farsighted and well-informed men to adjust prices to such values as exist or which are expected to exist in the not too remote future. The though with great operators is not whether a price can be advanced, but whether the value of property which they propose to buy will lead investors and speculators six months hence to take stock at figures from ten to twenty points above present prices" (July 20, 1901).
(bold, italics, mine)
My Notes again: Well, in simple English, great operators buy shares when they feel it is undervalued. Then, after six months, shares may reach their normal valuation thus giving profits.
When you are investing, you have to consider the value atatched to an investment. Then you use charts to time your entry if possible, and, to detect signs of trouble / profit areas.
In trading, there is no need for any value examination, just look at technicals.
In my post, I had written "Growth stories are good for trading with a stop loss, but investing in them, specially without adequate knowledge, is a disaster."
You can trade any instrument with proper risk control, no need for any fundamental inputs.