Saturday, September 15, 2012

Debating with a chartist

We make money the best way we can. You have your own and I have mine. I know some chartists make a lot of money, and some lose her shirts. Let me discuss mine.

Objective. Make money at the least risk.

Methods.
1. Market Timing.
http://bit.ly/RzOhRc

2. Use the right strategy for the right market conditions.
http://bit.ly/PtvDKY

3. Evaluate the best stocks in the best sectors.

4. Consider total return.
= appreciation + dividend + covered call - taxes - inflation

The above are aims and tools but they do not always work. It work for me so far in the long term. 


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We can make money in either way. However, many seasoned (i.e. old) brokers will tell you they see more fundamentalists owning big yachts than chartists. I rest my case.  


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One makes good money on buying Intel at dips and sell at highs.

This is the way to trade for companies that have good fundamentals. Intel is one of these companies. Avoid companies that could go to 0.

The chartists would do the opposite. Both of them are right if they execute in the right time. Fundamentalists buy at dips and chartists buy at highs (and expect the price goes higher). Both will make money when they sell at prices higher than they bought. Simple in theory, but timing is everything and hard to master. Fundamentalists need to have more patience as they bet against the tide

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