Long Term or Short Term Investment?
Qs- Are you buying for the short or long term? TA or FA are 2 different analysis tools but have the same common goal which is to make our monies work hard for us.
FA study a company inside out via financial data and economic outlook. But lack the precision needed for investors to enter the market. Also assumption are made to project future growth. Suitable for long term investment.
TA look into price charts and time entry into the market by analyzing previous price movements and patterns provided on charts. Suitable for short-term investment.
TA or FA, which is the better one? Both are essentially 2 different schools of thought when it comes to investing. Simply put, they are two different approaches towards achieving the same financial goal in investing – to profit from our investments.
So, you still want the best of both worlds? Use FA to help analyze a stock inside out and obtain its underlying intrinsic value (which TA lacks), and apply TA to find suitable entry timing into the market (of which FA is weak in).
Sound easy? But one needs analysing skills, good foresight and judgement to find the sweet spot. As for me, I had better off using my crystal ball to look for an answer
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