This debate demonstrates the general difference between a technical and fundamental investor. A follower of technical analysis is guided not by value, but by the trends in the market often represented in charts. So, which is better: fundamental or technical? The answer is neither. As we mentioned in the introduction, every strategy has its own merits. In general, fundamental is thought of as a long-term strategy, while technical is used more for short-term strategies. (We’ll talk more about technical analysis and how it works in a later section.)
Most strategies in the following chapters are based on some aspect of fundamental analysis. Some of these strategies are easier than others to learn: The Dogs of the Dow strategy, for example, is simple enough that even the most novice investor could understand and execute with relatively limited effort. Most strategies, however, require significant time and effort to master, and becoming a proficient fundamental analyst should be viewed as a life-long journey.