Fundamental is the most important. This allows you to invest in the right sector that you are familiar with, understand the underline business, ability to ignore the obvious non-sense (such as NVDA can not grow revenue by more thn 5% QoQ)，and know why you want to or not want to stay in a stock for long term.
TA can help you increase the probablity of winning on those stocks that you have a good FA understanding. Some people think TA can give you a definitive price direction and price target, and "if-else" scenario is useless. That is wrong. No one has crystal balls to be right at all time. What TA can do is to tell us, base on all the historical patterns and the current price action, the probablity of the stock move, for example, 75% chance of going higher vs 25% chance of going lower. Knowing this probablity helps you to
- Have confidence to go with the 75% chance, and ignore other non-sense noise around you
- Know the downside risk and have a plan for it if stock goes against you.
Take specific example, all the data and histoical behvaior told us that QQQ has much higher chance to push higher after it breaks 460 on 9/11. Do we know with 100% certainty that this is correct? Of course not. But would we rather play with that 75% probability and stay bullish, or would we rather go with 25% probablity and go short?
The answer is pretty obvious. This is why I have been kept buying from 460 and all the way up. On the downside, we need a proper plan for "what if I am wrong on that 25%" by setting up proper stop loss, there is nothing to worry about.
This is one of the ways to help address one of the most commonly asked question: "如何避免恐高"
