Tuesday, May 1, 2012

Advantages of Technical Analysis

* The Institution (insurance companies, pension funds, mutual funds...) uses it and they MOVE the market.

* I do know some folks make big money with TA.

* The price movement usually tells the reasons why it moves and volume confirms it. There are many factors not shown in the financial statement such as lawsuits pending, market trend, competition...

* It tracks the last two big plunges (2000-2002 and 2007) pretty well. They will not warn you for the upcoming plunge (as they depend on past data) but they warn you on potential, bigger lose.

My experience is to use it to track the market and specific stocks you want to trade. The stock moves due to the market, then the industry the stock in and then the fundamentals of the stock.

I invest longer term in taxable accounts (holding profitable stocks over 1 year) and a swing trader for retirement accounts. My objective is to make money at the least risk. There is no label on what kind of investor I am. Same as political party or a religious group. Once you're in certain group, you will be biased and forget your primary objective in investing. 


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(c) TonyP4 2012. Written in 5/1/12. Last updated in 5/1/12.

Disclaimer:

Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.

All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision. 

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