Technical vs fundamental analysis

Just thinking aloud and sharing another day in my life long learning journey of financial literacy and investing .

The importance of buying out time to study your chosen field of investing. After nearly 18 months of diving head first into the world of cryptocurrency as a complete investing novice I am just now fully realising everything I am doing wrong and how important mindset, attitude and doing your research is.

As new investors we tend to have this immature idea that if we do not act now and buy into this new or existing asset, coin or token we would have lost a “once in a lifetime opportunity. We do not have time to waste reading and learning about the ‘ins and outs’ of crypto currency investing. We will learn that on the way by watching random YouTube videos and following crypto gurus that have done all that boring homework and research for us.

But the simple fact is that this whole world of crypto currency is still in its early stages with incredible potential for even more growth, its not going away. That once in a lifetime opportunity that you may have missed today will be replaced by another opportunity tomorrow and sometimes the very same one that you missed yesterday. Many more opportunities will continue to rise in the following weeks, months and years to come. What we need to do now is learn this new investment class thoroughly and it does not need to cost us a whole quarter or half of a Bitcoin to do so.

A stumbled across a crypto investment course on the Udemy platform that was going on sale (I know they always have sales) and I thought “Why not?” (No I didn’t. I knew I desperately needed to buy this course to cut the inevitable losses I was going to imminently experience if I didn’t.) 

It’s not only the technical stuff, definitions and meaning behind so many cryptographic terms , or even the procedures you need to take to secure and store your crypto but also the mindset, attitude and motivations for being in the crypto space in the first place.

I will keep repeating Robert Kiwosakis words ” the best teachers out there now are not passive teachers and professors in schools, colleges or even universities its those who are actively and successfully working in the field of expertise they are teaching about”

Mohsen Hassan based in Canada that is now running his own brokers company in Montreal, Quebec; has had years of experience in the world of investing and naturally inputs that wisdom as he teaches in a very natural and improvised way. In addition his well meaning personal advice based on his own personal experiences and mistakes are really driven home in his lectures but at the same time he takes a neutral stand on certain coins, tokens or crypto innovators when he shares his personal view about them because he wants to motivate you to always do your own personal homework and research instead of relying on others, himself included, to decide for you.

Just a snippet from one of his lectures is based on the title of this blog; ‘Technical & fundamental analysis’ discussed in two separate lectures.

What technical analysis is and what it is not.

It should never be the basis for your choice of coin or token regardless of its current ridiculously low price or the fact that it is pomping or that it is at a very high price.

No, the basis for choosing any asset is and should always be ‘fundamental analysis’.

Fundamental analysis is about the company, their projects, the real world problem that exists and how they intend to solve it. Their ideas and solutions appeal to you and you begin to believe that it can work and you want to invest and be a part of their business. You have checked out their team, you have a clear view of their identity, qualifications, experience and previous successes. You have examined their financials and most importantly of all, you have read and studied their white paper.

In another lecture Hassan goes more deeply into the mindset of an investor. His motivations and what he is looking for. He is basically a kind of visionary or fortune teller that sees potential in something that has not yet come to be, he sees something that has not reached its full potential. It is something that is currently undervalued. 

This should be your basis and primary motive for choosing any asset. Technical analysis is merely an indicator or signal when to buy into that asset or when that time finally arrives to let go of it, exit and sell that asset to either take profits, (maybe converting it into the Bitcoin to store its value) or moving on to some new, yet to be fully valued, coin or token that has arrived on the scene.

If Hassen is not your style of teacher, no worries find someone who is. Just find and make the time to study. The sacrifice, time and expense that you make now will be repaid back to you in the future through a better return on your informed investment choices, more profits and less stress.

Published by wiseguy2016

Life begins at fifty something

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