The Faraj List of Exploding Stock Part 4.05

Wouldn't it be nice in 2006, if Cat, Laf et al, ie a whole host of experienced posters of old, that got pi55ed off with all the 'personal' remarks, started putting their input, into the thread again.........it was far richer for it. Whilst 'vis' may have been 'vocal' with the negativities, many other 'less experienced' mortals appreciated the diversity of posts. That in no way detracts from the input of our host or the strength of the thread, only that it serves to enhance it. At the end of the day, one disects the parts of each post that is relevant to the individual, but also lets them gain a little insight into how others view the data presented to them.

For me, the 'real' money is to be made on learning to guage the difference, in the way an experienced professional views the info and how the inexperienced investor views it. Fundamental and chart analysis only provides an insight into how the different market segments have reacted to the available info.

The Fundamental analysis provides the number crunching insight into performance, however the professional money is made on visualising the potential, long before the numbers are laid down in black and white. This is usually the point where the less experienced are starting to buy in, and the pro's are selling into strength, having already made their 50% etc.

The chart analysis, is a good pictorial representation of the transition of the 'money' thro the different elements which make up the market. ie Professional volume before the rise begins, steady sp climb, statements or other market indications made, sp rises, volume increases in lead up to results which is often traders coming in but also professional money getting out. At results, even if exceptional, unless the forward forecast is going to be record breaking, then more often than not, the sp drifts lower. ie the professional money only re enters if the potential reward is worth the risk. It makes no difference if the company has trebled profits this year, it only depends on whether they can convince the market that they can treble profits next year. The in-experienced investor, only sees the 'this years trebled profits' and buys in. The professional has already left the party, searching for their next 'treble profits potential' company, leaving the novice(like myself) sitting in a company, whose fundamentals are sound, but whose potential is drastically reduced.

Thus, it is only thro the widest possible diversity of posts, can one gain a better 'insight'. Anyone can learn the basics of either fundamental or technical analysis, enough to avoid most major pitfalls, but the real money is made from having the insight to spot the right potential and that only comes from experience.

Just my novice observations.

All the best to everyone in 2006.

maxi ;0)