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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (1257)3/10/2001 8:04:41 AM
From: Arthur Tang  Read Replies (2) of 1471
 
Revisit moving average and why it is only used for paper investing?

This thread has been turned into a chat room and wasting time and space to wade through all that chit chat(even had posts of science fiction).

The moving average is merely the price average including the last day of trading. It has no inclusion of volume which gives you the total amount of money changes hand(liquidity). If you are an amateur then you think it has some significance. It could prove to be valuable when you fit the curve. But the minute you invest by the moving average as a leading indicator, you will find yourself losing money. QQQ is an example of the errors of traderX, using moving average. Then he has to correct himself to short the stock. Most beginners are not people who can short stocks with a lot cash reserve. He should have advised to use options to take advantage of declining value of the stock short term.

Lets not turn this thread into a mumbling chat room disgracing each other writing nonsense.
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