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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading:

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To: Steve Felix who wrote (737)3/12/2001 4:57:16 AM
From: Arthur Tang  Read Replies (1) of 769
 
Thank you for your opinion.

I would encourage you to use your 40dma; if it works for you. Moving average, however, is only good for the 100 share traders, unfortunately.

When a fund disposes 1 million shares it will drive the shares up due to oversold. When they buy 1 million shares, they have to spoon feed from the specialist so that the overbought does not crash the stock. In the old days, funds only buy 50,000 shares; now they do 1 million shares or more.

As far as Cisco goes, they do not manufacture, so when the inventory is liquidated, they become a new company with many new products to sell to their captive customers.

Fundamentals must include the analysis of customer retention which most of dotcoms lack. Even in balance sheet plus profit and loss statements, one must look for hidden values. If you intend to hold for 5 years to get the 300% gains(without paying capital gains tax); then you have to do fundamental analysis daily for any news which may be damaging.

While you like to glorify yourself to write your method of success; many of us knew your views which people have tried and abandoned. We are not fools, who foolishly lose money on technical analysis using moving average only and taking unnecessary chances.
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