| Many people today want to know more about | | | | machine. Short term, a stock price can be affected |
| technical stocks and bonds investing to achieve their | | | | by all kinds of variables unrelated to how the |
| financial goals. Actually, the truth is this: technical | | | | company itself is actually performing, like how many |
| investing applies more to stocks than bonds, because | | | | investors are jumping on and off the bandwagon. |
| of the longer term nature of bonds. | | | | However, long term the market will always value a |
| Here's a brief overview of technical investing: this is | | | | stock according to how the company is performing. |
| essentially investing trying to predict a pattern about | | | | Obviously, technical stocks investing stands in stark |
| a stock price, and capitalize on that. For instance, if a | | | | contrast to value investing, which is investing for the |
| technical investor sees that a particular stock has | | | | long term based on a particular companies' |
| been going up for a week, then they will generally | | | | performance. This is the method that Warren Buffet |
| look at its' past history. | | | | and Peter Lynch, among others, have used to |
| If generally speaking, the stock historically goes up | | | | achieve tremendous success, and virtually risk free. |
| for 2 weeks in a row, then follows that by dipping, | | | | You see, when you focus on a companies' past and |
| then now would probably be a good time to buy, as | | | | likely future performance and how well they are |
| it would likely go up for another week before | | | | doing financially, you can essentially eliminate risk |
| starting it's decline. Obviously, there are some other | | | | when you invest in only well run companies. |
| factors at play here, but essentially that is what | | | | So which investing method is best? You have to |
| technical investors try to do-capitalize on the | | | | decide that for yourself. Now that you have the |
| patterns of a particular stock price. They will not look | | | | basic knowledge of technical stocks and bond |
| at the companies' financial statements, as there is no | | | | investing, as opposed to value investing, you need to |
| need for this because they aren't planning on holding | | | | do your own research and determine which method |
| their investment long term. | | | | you want to follow. |
| Remember, the market essentially is a voting | | | | |