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69 sats \ 3 replies \ @siggy47 1 Feb freebie \ on: Are Technical Analysts Just Fortune Tellers? bitcoin
I'm by no means an expert, but when I was into investing I was more of a fundamentals guy. I picked up enough to know that the theory is based on human psychology. Humans react predictably to price action. But, what has happened is that traders react to the patterns. It seems almost like a solipsistic loop at times.
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72 sats \ 1 reply \ @kr OP 1 Feb
the fundamental stuff makes more sense to me… a business earns a flow of cash, and is worth some multiple of that depending on the time value of money.
if humans all react in predictable ways to price action, and traders are exploiting those patterns for their own profits, aren’t we back to square one where nobody really knows where prices will move next?
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46 sats \ 0 replies \ @siggy47 1 Feb
Exactly.
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226 sats \ 0 replies \ @kepford 1 Feb
The fundamentals approach is what makes the most sense to me. That coupled with the knowledge about how markets tend to be irrational in the short term but more rational in the long term... that is the approach that makes the most sense to me.
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