A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

14. Fundamentals—Connecting the Two Sides

Some investors favor the technical approach for selecting stocks and timing trades, whereas others rely solely on the fundamental approach. Both of these contain merits as well as setbacks. However, using both in combination improves overall information, reduces market risks, and adds to the chances for profits from well-selected and well-timed trades.

Another point is worth mentioning: Strong fundamental companies tend to also experience equally strong growth in stock value. This makes sense. The more profitable a company becomes and the more it increases the value of equity, the more valuable its share price. Although this might become apparent only over the long term and not immediately, it is also ...