Re: Why are value investor types so rigidly opposed to TA?
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From a trading perspective, TA is superior to FA. FA can take years to "work" while TA can be scaled to minute by minute gyrations. From an investing perspective, FA is superior to TA. FA provides a higher degree of reliability while TA is a coin toss or relatively trivial.
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I find it ironic you call TA a coin toss. FA is based on what you estimate to be the intrinsic value of a security. Evidence has shown that even if you have solid fundamental information, its a coin toss whether the market will take in that information and put it into the stock price. The market only reflects supply/demand values. It does not need to reflect the true value of the security. One could argue that eventually, a security always returns to its true value; that may be true, but how long does that take? securities stay wrongly priced for YEARS. Profiting from FA is easy. Beating the market, making above average returns from FA, now thats a coinflip.
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FA is is definately a skill set that not many posess. Not only do you have to have the ability to find under valued scurities but you have to have the psychological ability to hang on through thick and thin which may be a long time. So, I totally agree with you. Beating the market is not easy no matter which method you use. Its just that for a taxable account taxes and transactions cost are considerably less for long term investing then for short term trading.
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