Investing is a business of investing into businesses.
Fundamentals & valuations are the core tenets of investing which is bound to money. Sustainably.
Problem starts when one starts using fancy indicators, charts & patterns into ‘investing’.
If you were a business person who managed a cafeteria, you won’t make your business decisions on basis of some random candlesticks. You’d make business decisions with respect to your cafeteria based on the location, customer preferences, growth prospects, returns on investments, etc, etc.
Same is the business of investing. You use valuations, fundamentals & invest on the understanding of the core underlying business of a stock.
Logically, that’s the right approach to investing.
Understanding the business & paying fair or lower price to the value for the future earning prospects.
The whole process of looking at charts, patterns, indicators & candlesticks doesn’t makes sense to me in investing. You rely on those only when you don’t understand what you’re doing.
The entire financial industry is here to make investing complex. The more complex it is, the less are the chances people will make money.
Smart investors make investing simple & logical. No holy grails. No rocket science.
