Last week we talk about fundamental analysis. One of the factors analysed by fundamental analyst is economic factor.
Two words frequently encountered in economic reports these days are Inflation and Stagflation. What exactly do they mean?
Very often when we read reports and analysis, the US market is mentioned. The US market exerts no small amount of influence on other markets, especially those in Asia that depended on export to the US.
The danger of Inflation in US is highly anticipated. Inflation is the sustained increase in the average level of prices of a basket of goods and services. Do you see oil prices going up? How about transportation, groceries? Many believes that the consistently high oil price will trigger an inflation.
Some forecasted that we may even see stagflation in 2007. Stagflation = inflation + slowing economic growth. This was what happened during the 1970s, when world oil prices rose dramatically.
How does all these affect investing? Read on to find out.
Continue reading ‘Inflation, Stagflation and Investment’
Beside looking at Technical Analysis which looks at the trend of past events to forecast future events, long term investors may also want to look at Fundamental Analysis.
In many books and papers, Fundamental analysis is often presented as an direct opponent of Technical analysis. Typically the introduction would focus on the drawback of one method and highlight why the favored method is better.
Do not be confused. It need not be this way.
Fundamental analysis can co-exisit prefectly with Technical analysis. I often use both of them in my investment analysis. Oftentime while looking at the chart, I would also look at how the fundamental factors like the economy and market looks like.
In order to use them however, you would need to understand how each of them is applicable and to use them to the fullest effect.
I did some introduction to Technical Analysis and now let me do the same with Fundamental Analysis.
Continue reading ‘A visit to Economic class and Fundamental Analysis’
The Time I referring to here is the amount of time on hand, not the period of time commonly spoken of in investing.
What I am trying to get at here is that in order to be successful in investing, one not only need to invest money but also invest time as well.
Regardless of the form of investment – whether stocks, shares, bond, unit trust, options, futures, commodities and what have you, time is required to understand the basics and learn the details.
There is no shortcut to investing. So what happen when you have limited time?
My experience taught me 3 things.
- Educate yourself
- Get to know yourself
- Set aside time
Continue reading ‘Investing and Time’
We had looked at the concept behind Technical Analysis (TA).
The next question is how can investors actually use these TA techniques?
The answer lie on the ability to identify 3 important features:
- Identify a trend
- Identify that the trend is continuing
- Identify the trend has reversed
When applying TA techniques, you are always on a lookout for one of these three features.
Continue reading ‘How to apply Technical Analysis’
Technical Analysis, in the simplest sense, is the forecasting of the future with past data .
Typically a wide variety of charts and data are examined to see what the past movement or trend can tell us about the future movement and trend.
The word forecasting tells us that the it is not an absolute certainly but a close possibility .
This, if you must, is first take away of Technical Analysis (TA).
The effective use of technical analysis can help investors anticipate what is “most likely” to happen. The investor may still need to assess TA result objectively based on information outside the domain.
Continue reading ‘Introduction to Technical Analysis (TA)’
Maintaining this site had encouraged me to polish up my technical analysis (TA) knowledge further.
Starting with this introduction, my plan is to share my notes as I further my TA education.
Join me in this journey to be a better investor.
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