Let’s look at the technicals first.
It refers to the use of K line or technical indicators to observe and predict the trend of the stock market.
Its internal logic is threefold: market behaviour contains and absorbs everything;
Prices fluctuate in a trend fashion;
History repeats itself.
Let’s talk about fundamentals.
The so-called fundamental analysis refers to the operation of analyzing the macro economy, industry development and the performance of specific companies.
Its internal logic is that the stock price is the reflection of the company’s intrinsic value.
Take Kweichow Moutai as an example: in 2016, the stock price of Moutai was only more than 100 yuan. Based on the fundamental analysis, we can see that the baijiu market has a high gross and huge potential. The performance of Kweichow Moutai is also growing steadily, and Moutai is still irreplaceable.
After doing a basic analysis, buying Moutai and holding on to it for a long time, by now, will have a gain of nearly 20 times.
But a lot of people can’t handle it, and when faced with a 10 percent or even 20 percent correction, most investors can’t.
We often say that technical trends do not fully reflect the fundamentals of a stock.
In contrast, the fundamentals of a stock cannot fully explain the technical trends of a stock.
According to the technical aspects of speculation can not look at the fundamentals, but according to the fundamentals of speculation is inseparable from the technical.
Because the technical aspect is more direct, more objective.
Most investors prefer to look at technicals and invest in the short to medium term.
In fact, in the actual combat of A shares, or to technical surface.
Markets shrugged off the Fed‘s doubling, the dollar fell from a three-week high and gold rallied more than $20.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
