This article will explain some of the differences between Technical Analysis and Fundamentals and explain a bit about each type of trading. Excerpts are taken from the best-selling book Market Wizards where Jack Schwager interviews Ed Seykota and Bruce Kovner.
Ed is a trend trader (uses technical analysis) and also relies on hunches from 20 years of experience. He definitely emphasizes his reliance on technical analysis. While reading this, I liken, the hunches to knowing the effect fundamentals can have on a market although I could be mistaken, they could be purely from reading lots of charts so well. Here are is exact words Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them funny-mentals. However, if you catch on early, before others believe, then you might have valuable surprise-a-mentals.
Ed says his priorities when trading are the long term trend, the current charts and picking a good spot to buy or sell, in that order.
Bruce says technical is awesome and very useful but by no means disregards fundamentals.
Its important to note that technical analysis is a critical method of...
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