There are two common ways to approach investing in the stock market. Fundamental analysis and Technical analysis.
Fundamental analysis is basically caring about the underlying company, economy, economic conditions, etc. listening to pundits about what is going to happen. It seems to be more news driven. What the fed chairman said today, trade with China, will we have a recession, etc.
Technical analysis is following the charts. It is more data driven. I’m a data guy. It tries to model aggregate trading behavior of the markets. What is actually happening. I think it is better suited to large aggregate indexes as compared to individual stocks. People who use this approach are sometimes called Technicians. It seems to me, with Technical analysis you don’t have to worry what all the financial news pundits are chattering about and speculating about what might happen. You just try to follow simple rules. There are a thousand triggers which might trigger a drop in the markets. I don’t care why, I just care that it does. Technical analysis tends to bring out the inner geek also. My system is like entry level technical analysis, not like day trading. Trades are done every so many months, sometimes 4 or 5 months or more. Well within the trading limit rules of the TSP.
Back to Home
what-i-do-with -my-tsp.blog 