I came about to read the above article (Executive Money section) which i thought i share with most of you.
While most people debate on the strategy of using fundamental or technical analysis, I had often pointed out, that there is a third which i had often used, which contributes to global speculators/investors mindset. This would entirely explain the illogical explanation of how an asset class move in extremes.
Remember: Markets can stay much ILLOGICAL much longer than an individual can stay solvent.
There is no easy answer. To get a grip of how individual investor psychology work, one has to read countless of financial articles from various financial distributors to form an opinion of where the cattle mentality is headed.
Individual investors may use either Fundamental or Technical Analysis or both. There is NO right or wrong answer as long as Money is made!
However, to have a better undertstanding of financial markets and the possible directions of where the market is heading, WE use all three of them to form an opinion and thus the strategy in diversification, asset allocation, coupled with dollar cost averaging depending on the cycle of the market!
Glossary
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