[lookout123]

what you are talking about is generally termed "fundamental investing".

fundamental investing - look at the company, you are considering for purchase. look at the books, the products, the management, the competition, catalyst for improvement, etc. make investment decisions based on assessed value of company and expectation of future earnings. usually associated with a measured "buy and hold" investment philosophy. believe in long term capital appreciation combined with a strong dividend focus will outperform other methodologies in the long run.

technical investing - look at a stock. consider the stock's action in relation to the market, to it's peers, to the economic cycle. look for patterns and catalysts to make the stock price move. make investment decisions based on charts, graphs, and trends. usually associated with active traders who believe they can capture capital gains and avoid losses by properly interpreting the charts.