The Great Debate in the World of Investing

02.12.2016 • Emerging Markets

By Federico Tessore – Passport Investor (Argentina) –

Just like great debates over soccer (and there are plenty of them), there’s a seemingly never-ending controversy in the world of finance over the best methods of stock valuation.

Social media networks have made it possible for more people than ever before to join the debate.

In the world of trading, the investor is always looking to buy at the best possible price. That is, the lowest price; of course it’s the opposite when it comes time to selling your investments. Here are some ways to go about buying and selling at the best price:

Technical Analysis: its origins date back to 17th century Japan, where they were trading in rice futures. The West followed suit only two centuries later.

Investors feels drawn to technical analysis because, on one hand, it’s a simple method of valuation that applies to all types of financial assets and, on the other hand, because the adrenaline rush you get from watching the market in real time, watching the graphs, is like holding the beating heart of the market in your hands…

Technical analysis is based solely on stock price. This strategy focuses on price to the exclusion of everything else because this approach assumes that the price of a stock incorporates and reflects all relevant information – all information about the stock is priced into the market.

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