There are many reasons I use technical analysis instead of some of the other analysis methods, but more importantly I have faith in it. Read on!
The other popular discipline is called fundamental analysis. This method of investing is essentially based upon fundamental ratios or as they are often called on Wall Street, multiples. Many followers of fundamental analysis also break it down further into a growth or value approach. The more aggressive growth approach is the hunt for stocks that are currently not registering any multiples (no earnings, no sales, etc.) and they are sought because of the analyst’s assessment that they have potential for growth. The value approach deals with good multiples (good earnings, good dividends, etc.). The value approach is what Warren Buffet uses. Gosh, if he uses it, it must be good. Keep reading!