Tuesday, April 15, 2014

Importance of Technical Analysis

I am a die hard fan of technical analysis. I trust the chart because it have been helping me making good money. I am quoting CNBC's Bob Pasani who said it best:

"Seriously: How can you possibly have a lot of faith in fundamental analysis when, for example, YELP (YELP) goes from $100 to $60 in six weeks? Or Netflix (NFLX) goes from $450 to $320 in the same period? Of course, fundamental guys argue that stocks get overvalued. Duh. But say what you will about technical analysis: If you are in a sector where fast money is prevalent, you are a fool if you don't have very good entry and exit points, most of which will be built around technical. "

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