We have seen a big debate about what works, where technicians were dubbed as jokers and the Fundamentals were dubbed as the only way to make money.

I would like to present my Experience with the markets, which confirms with the old age (now forgotten) theory of "Optimism for a Fundamentalist is the highest at the Tops while the optimism for a technician is the greatest at the bottom". 

By the way, anyone who says that He has not met a Rich Technician.. Send him to Ed Seykota, Ray Simmons, Martin Zwing, or even Atul Suri

Let me add sentence in the beginning "Mind is like a parachute.. Best used when open".

We have seen a big bull markets in the equities since May-2003, when the Sensex was at 2900, while the corresponding level for the Nifty was 900. Since then we have had Three big Corrections.. In May 2004, Oct 2005, and again in May 2006. After all the three big falls the Technicians said that a new Bear Market might have begun, while the Fundamental guys recommended "BUY THE DIPS". The markets, thanks to the optimism all around, have bounced back extremely sharply to new highs, making the

technicians eat their words and making the Fundamentalists look like god and the only real analysts.

Now flash back to 2000.. The markets had a Plunge in Jan 2000, The Technicians called for a bear market and i clearly remember that the Same Fundamentalists called "Buy the Dips" (Ask BasantJi, does he endorses that or not), but the markets kept dipping. There were rallies in Apr 2000, Dec 2000, Post sept-11 in 2001 and again in Nov-Dec-2002, which were followed up by new deeper dips which ended when the Infy Crashed, which turned out to be the end of the bear Market of 2000-2003. Technicians (who had caught the entire downmove) were hailed as Gods, while the Fundamentalists were dubbed as "Jokers".

The optimism for Fundamentals as a way of analysis is the highest at the Top.. When the most required friend is a technician, while the optimism for a technician is the highest at bear market bottoms, when the public requires a fundamentalist But Public, As per say get it wrong, as a result always suffers because they believe in the wrong person at the wrong time.

A good stock always makes money, a bull or a bear market (Infy made money but could you have slept with a stock down 80% from the high after the Infy crashed in 2003) I bet every one sold out after that day. Those who didn’t, could proudly say that they have worked hard for their money

Bottomline.. There is no holy grail, which will tell you when to get out (or get in) at what point of time.. Believe in yourself and then trade wisely and trade well.

There is another personal experience.. A smart technician (who don’t come in the media) can make you money in a Bull market, But unfortunately, the same cannot be said about a Fundamentalist in a bear market (imagine him telling client that he liked the Funda of any stock at 800, while the same stock is now a short at 600). I bet he will lose the client.