Category: Money Tips Date: 2006-07-30
The role of technical analysis on the size of the problem, there have been many controversies. Especially in recent years advocating the market value of investments, some investors believe that the limited role of technical analysis, stocks of listed companies to pay attention to fundamental analysis. However, with the upward expansion of the bull market space, relying solely on fundamental analysis, has lagged far behind the developed market.
Progress in the index to 4,000 points today, the emergence of a considerable number of shares to double up market, many stocks have been far out of range of the actual investment value, if measured solely on fundamentals, it will miss a rare investment opportunities. In fact, the fundamental analysis is essential, but also high-quality stock investors to choose the ultimate method. Fundamental analysis, however, and can not help investors to determine the timing of the sale, but also can not help investors to determine the Quotes of the trends, therefore, the operation of the bull market, investors must pay attention to technical analysis.
We all know that the manufacture and use of tools is the main difference between humans and animals, the so-called: "The labor wants, we must first sharpen his tools", the use of tools can make a very easy job to complete, the party is often the use of advanced weapons Weapons can be easily overcome the other backward. This reasoning is equally applicable in the stock market, the stock market in the weapon is a variety of stock analysis software and the software built on the basis of a variety of technical analysis methods.
Because in reality, the vast majority of investors are not fully aware of the insider and the main capital market trends, even within the listed companies are in the investor can not understand the true intentions of the company's management. However, technical charts can be displayed in the first objective and the actual trends in individual stocks. Because of listed companies on a variety of important information, and will eventually all reflected in the technical trend, the trend is actually to read a technical understanding of the most genuine insider information. Therefore, to understand the technical content of the chart, read the technical trends in the language becomes of paramount importance.
We recently of the stock market, for example, many investors in 2000 points or 3000 points on the view that stock market will peak, and there are many investors in advance "escape-top", an early sell stocks, short positions to wait for market's callback. However, the stock continues to rise, have been rising to the current 4,000 points. In fact, this from a technical analysis of trends in the theory is very easy to understand. Quotes on an upward trend when the time, we only need to closely follow the market trends on it. The trend now what is it? Is up, then investors should follow this trend operation. This upward trend until one day disappear, and then be too late to sell. In fact, we do not need to predict what the head when, in what position, or in what form will be shown. The key is we should be able, through technical analysis methods, in the stock market when the head and promptly identified and decisive clearance sale. There are many investors are worried that a strong stock market is up, there will be any crash Quotes. In fact, with the vast majority of individual investors holding the market value, if the intended clearance, but the things that only a few minutes.
Again from the investment value of individual stocks to understand that some investors think that their stock has gone up a lot, the stock has gone far beyond its value, therefore the stock to sell. However, until they sell the stock after the discovery that those who are far away from the value of the stock can even double up. This is also a fundamental analysis is only concerned about the neglect of the error method of technical analysis. Because the basic analysis and can not decide Stock Quotes of the start-up time, it will not help investors to understand the rising trend is over, we have in practice still have to pay more attention to the role of technical tips. In the field of portfolio investment, technical analysis is not a panacea, but there is no technical analysis is totally unacceptable. (Wang Yi-Wen)
