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Non-Tech : The Official Guide To GOOFS

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To: Paul Weiss who wrote (86)5/31/1996 9:30:00 PM
From: Brandon Scott   of 3539
 
The things that bothers me most about technical analysis is...well, you're not buyin' stock in a chart, you're buyin' stock in a company. Charts are all well and good (as Mr. Perot showed us back in '92), but they don't say much about the company behind the stock. Even if they can predict short term movements, the company determines long term movements. I intend to keep a long time horizon on my investments, so I'm not terribly worried about short term stuff. Likewise, I can see how charting might indicate subtle tendencies, but these may be overpowered by random variations unless you average over a large portfolio. My portfolio is quite small.

Thanks for the pointer towards more info in technical analysis. I might not believe in it, but that doesn't mean I don't wanna learn more about it. Do you think that technical analysis leads to self-fulfilling prophesies? That is, enough charters see the first part of a pattern, so they drive the market and cause the rest of that pattern to appear?

Brandon
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