Couple quick throughts on fusing TA with substantitive business case research. Agreed that a TA tread may be best to get into detail (Paula, Ill bookmark yours - Do I remember you posting on The Rational Analyst before?)
I never buy a company on TA, and in fact don't buy companies I'm not interested in holding long term. I'm an investor, not a trader. But I use TA to identify good entry points & accumulation points. When I looked at REGN in late Dec, it had been finishing s large runnup and was clearly overbought at around 36. I set a good till filled buy at 32, using charts to identify a likely retrace point.
I've also used TA to do some accumulation trading. Once I have enough shares of a company to trade a portion, and I know a company's paterns, I have done a series of good till filled sells at a point above, or sell manually when a stock is clearly overbought, and as soon as it sells, turn right around and enter an order for 10% or more shares at a likely retrace point, again based on charts. It works - I just need to discipline to use this more consistantly.
Who wouldn't want to get more shares of ABGX, MLNM, REGN, SEPR.. courtesy of market volitility ?
I usually use 1/2 position, so I'm OK if there is more good news, the stock goes up more.
IMSCO |
