Successful Stock Signals for Traders and Portfolio Managers: Integrating Technical Analysis with Fundamentals to Improve Performance, + Website

CHAPTER 1

Using Moving Averages and Relative Strength Performance to Beat the Index

Relative Strength Index, Money Flow Index, Keltner Channels, and Standard Deviation, with Apple Exhibits

KNOW THE PLAYING FIELD

There are fundamental and technical ways to make money in the stock market. The fundamental techniques require education—an MBA or CFA would help—and long hours of research about the financial data of a stock and prospects for future growth. Further, since Wall Street, sell-side analysts are highly paid to do this, you are competing with professionals, while you may be only an amateur fundamental analyst. It is possible, but not probable, that you will be a better stock picker than the professional analysts. Professional fundamental analysis is widely available and free, so use it instead of doing it yourself. Value Line is free at your local library. Online brokers supply such reports as the Standard & Poor's analyst reports free of charge, and most brokers supply a reputable fundamental service or their own fundamental, so called sell-side analysts.

The second way is technical analysis. It can be learned quickly, just by reading this book, and used to make money in the markets. Looking at charts first, and then reading what the fundamental analysts have to say, is an easy way to make profits in the stock market. Doing fundamental research and then looking at the charts is the hard way. I could never ­understand why some portfolio managers insisted on doing it the hard ...