Abstract
Traditionally, to make a profit, most individual investors and fund managers are forced to take a view on the direction of the price of something. The traditional or fundamental strategy is to study all the aspects of the market-place, all the factors affecting the price or that might affect the price. In addition, many also consider what are known as the technical factors. Technical analytic methods use the sequence of previous prices to come up with an investment recommendation. However, whether following fundamental analysis or technical analysis or a combination of both, the ultimate investment decision is that one has to buy or sell something. The traditional investor has to take a view on the direction of the price. Most investors then focused on their respective stock markets. With the growth of the derivatives industry, investors now have a choice.
