|Technical Research: In the field of technical research there are many tools available on the market. Last prices can be supplied daily and per second. Based on these detailed price information, nice and very affordable software enables making possible intelligent charting forecasts. Support and resistance levels are presented in beautiful graphs. Some focus on a short period of some days, others on longer periods of weeks and months.
|Day-Trading: In large and small trading rooms innumerable traders occupy themselves every second with all techniques imaginable to trade on the last price. Some specialise themselves in arbitration for example between similar shares on several stock exchanges and currencies. Others interpret the last known micro - and macro-economic information as fast as possible and trade on the suspected impact on market prices. Some employees of large financial institutions dispose to this end of very large sums of money and low operating costs to operate as effective as possible. Other day-traders have more limited resources and higher operating costs. On the other hand they will be less slowed down by bureaucracy in their trading.
|Hedging and derivatives: From trading rooms and (hedge) investment funds, positions are built in some companies quoted on the stock exchange in shares and/or their bonds. Using sometimes complex (derivatives) positions and daring assumptions, large capitals are traded daily.
|Long Term Investors: The daily fight with technical research, day-trading, hedging and derivatives, does not affect the long term investor. In the short run and with technical research, day-trading, hedging and derivatives, you might perhaps gain a decent reward by hard work and some intelligence. A true long term investor gladly leaves this to other people. In his opinion eventually the price of a share always continues moving around a level determined by the true value of a company within the context of variables determined by the macro-economic environment such as interest levels. His primary interest is not the daily market turmoil but his estimate of the difference between the price of a share and its true value over a longer time frame.
|Determining the difference Value/Price of a share, requires tools indispensable for long term investors. Reports of analysts, their recommendations and their price expectations and sometimes own researches are guiding principle for their investment decisions. Markets and people operating in these markets from within companies, remain unpredictable up to a certain extent. Without software it is simply not possible to collect all available information of all quoted companies to interpret it objectively into the true value of a share. Even with software, there remain restrictions requiring human insight before investment decisions can be taken. If those restrictions would not exist, the difference between price and value would disappear immediately. Predicting and comparing objectively and verifiably remains unavoidably a difficult and time-consuming operation. Nevertheless, provided correctly applied, such an operation might probably outperform the index. In the long run human ratio always overcomes 'underbelly' feelings and 'irrational exuberance'.
|Fundamental Investment Research shall never cease to wonder why differences between price and value exist.
|A Sense of Wonderment these differences Value/Price continue to exist and the missing of reliable software, have made possible the unique F-Valuation Software.