What are the pro / cons of technical analysis?

[Vineet Kumar Nair]

Pro –

1. Less time consuming and ideal for determining the entry and exits points for short term.

2. The inputs to analyze are easily available which makes it easier to determine which stock to buy.

Cons –

1. Not ideal for long term investment.

2. High risk as compared to fundamental analysis as we will not know whether the company is fundamentally sound.

 

 

[Ganesh]

Pro – Does not require any investment to do the analysis. Inputs are globally available at the same time to everyone so manipulation is not possible.

Cons – Not advisable for long term investment. Also as we did not know the fundamental information, we might not know whether the company is fundamentally strong or not.

[Guru]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Pro –</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>1. Less time consuming and ideal for determining the entry and exits points for short term.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>2. The inputs to analyse are easily available which makes it easier to determine which stock to buy.(especially for retail traders)</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Cons –</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>1. Not ideal for long term investment.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>2. High risk as compared to fundamental analysis as we will not know whether the company is fundamentally sound.</p>

[Gokul Ramachandran]

pros: No need for investment to analyse the stock.

Cons: Not as strong as fundamental analysis. We cannot figure out why the price behaves the way it does.

[Hassain]

pro : requires only less time to analysis any given company

con : very unpredictable the chances are not always in favor of the analysis

[Author]

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