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#1
05-12-2007, 10:36 AM
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just technical
What do you think of investors that just invest based on charts. A chum of mine invests in this manner has been reasonably successful. I was shocked when I told him that the numbers looked good and the stock will fly on Monday and he didnt even know that, nor did he even know what the company did! This is a guy that has a substantial investment in this company.
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#2
05-12-2007, 11:44 AM
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Re: just technical
Technical traders, trading short time frames don't care what a company does.
But, if your friend is investing long term based on technicals, he should at least be aware of the timing of earnings reports that will effect the stock.
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#3
05-12-2007, 11:07 PM
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Re: just technical
I think using fundamental analysis for set-ups and technical analysis for entries and exits would work well.
Technical analysis isn't best suited to investing though - it's more for shorter-term trading
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#5
05-13-2007, 02:00 AM
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Re: just technical
[ QUOTE ]
[ QUOTE ] I think using fundamental analysis for set-ups... [/ QUOTE ] What would a fundamental analysis "setup" look like??? [img]/images/graemlins/wink.gif[/img] [/ QUOTE ] A market that is undervalued or has some other fundamental factor which suggests a move would be a set-up. A market can be fundamentally under/overvalued for a long time before it moves. You can be correct on your fundamental analysis but incorrect on your timing and so still lose money. Unless you have very deep pockets, you can't weather 'fundamentally incorrect' moves against you for long. Tech stocks were grossly overvalued in the late 90s. Shorting them based on fundamental analysis would have killed you. You need to wait until the technicals suggest the time is right. Technical analysis can help to put your money to work in markets where a move is statistically imminent.
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