Fundamentals and Charts
Two questions, not two camps.
People talk about fundamental and technical analysis as if you have to pick a side. You don't. They answer different questions, and a serious investor ends up asking both. Fundamentals ask Is this business sound, and what is it worth? Should I own it at all? Technicals ask Given that I want to own it, where do I act? Where am I wrong? Fundamental analysis studies the business: what it earns, what it owns, what it owes. It tells you whether a company deserves your money. It tells you almost nothing about whether today is a sensible day to hand it over. Technical analysis studies the price: where it has been, how it is behaving, where buyers and sellers have shown up before. It tells you nothing about whether the business is any good. It gives you a language for deciding when to act and, more importantly, a place to admit you were wrong. Own good businesses. That is the fundamental question, and it is the one that decides most of your outcome. But the moment you place an order you are also making a timing decision, whether you thought about it or not, and this book covers both.
Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: The Basics.