The Quantitative Part-Timer
Quantitative analysis can be a very powerful tool for the part-time trader. It offers us the ability to do some things not easily achieved otherwise. That is the reason we have brought it in to be included among the things we can apply in our trading.
Quantitative analysis can be a bit more difficult than straight out fundamental or technical analysis, though. As a part-time trader you may not have the time – or the inclination for that matter – to devote to collecting data and performing in-depth studies of price movement, modeling economic scenarios, and the like.
That is completely fine, though. You do not necessarily have to create your own quantitative studies to make use of quantitative analysis in your trading.
Recall the EPS and RS figures from Investor’s Business Daily we spoke of earlier. They represent quantitative analysis that you can easily use in your stock trading in a number of different ways. This type of externally available information, when applied with a full understanding of how it is derived and what it represents, can have a significant positive benefit to your part-time trading.
If you apply the results of quantitative analysis with an awareness of what they represent, you can save time in your market work and/or make better trades. You do not even have to be some kind of math whiz to do it, either.
In the next chapter we will take a look at how brining together the various forms of market analysis can help you make your part-time trading extremely effective and efficient.
Posted: under Chapter 4.
Related articles
- To Trend or Not to Trend (July 31st, 2007)
- Finding the Trends – Market Analysis (July 31st, 2007)
- Fundamental Analysis (July 31st, 2007)
- The Fundamental Part-Timer (July 31st, 2007)
- Technical Analysis (July 31st, 2007)