I think having some knowledge of charts help, if one assumes that the fundamental aspects of the business reflect in the price, and as such, charts present what the price is doing, consolidating after a good run up, or is there some selling, or decent profit booking is happening with considerable volume, are there any patterns forming etc etc.
An investor who understands fundamentals and is also aware of technicals may want to stay without selling completely, or reduce position, if he believes the valuations are not sustainable.
If one understands a business more, a company can become a truly long term investment, and as such, one can sit through months and months of consolidation, because there isn’t much selling happening, and many are sitting on their positions, so to speak.
One can even look at the fresh purchases being made at such an elevated price levels.
And we have such technofunda practitioners here in VP, not necessarily with a long term view, but who understand the business and take appropriate entries and exits based on charts.
I have some elementary understanding and I am learning, and I am getting benefited by this approach.
Not invested in Bectors but have been in a similar position of booking early profits without knowing that a fall or the selling isn’t big, and that I can check a few more things to come to the decision of selling completely.
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