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FUNDAMENTALS
RETAIL INVESTOR: LONG/INVESTOR
4 Politically stable
4 Economically stable
I4 Industry expected to grow from $6.7B in 2016 to $35B in 2020 and these values are continuously being revised upwards as more jurisdictions are legalizing
4 Financial Statement analysis
4 Diversified Industry.
4 Undervalued Companies
TECHNICALS
RETAIL INVESTOR: TRADER
4 Stocks of some companies have predictable and repeating patterns – using charts.
4 Long or Short techniques
I4 Shares of many companies are in high demand facilitating relative ease to enter and exit positions.
4 “Stink bids” are often successful.
A GRASS ROOTS MOVEMENT FUELED BY THE BUDDING RETAIL INVESTOR
(Published Spring 2016)
For our purposes, we will treat “Top to Bottom” approach the same as Fundamental Analysis and the “Bottom to Top” approach the same as Technical Analysis. From our March 2018 article that appeared in the US edition, other variants of the tried and true buy & hold include Evidence Based Investing.
Referring to those that follow these techniques as “investors” and “traders” can often lead to heated arguments as Traders (including day traders and short sellers) consider themselves as “investors”. However, the term is generally used to classify a strategy to buy and hold investments to accumulate wealth over a period of time whereas trading involves frequent buying and selling in an attempt to outperform the returns that would be generated through accumulating wealth over a period of time.
Challenging due to a lack of history for many in a continuously evolving ecosystem!