NV, TA is not just for day trading, IMTO, it is just as useful for longer term positions, to decide when to buy, and when to sell. Just because the fundies of a company are good, it does not means that the company stock will move in the direction you want. TA helps you decide if a company with good "fundies" will move or not. On December 31st, while forecasting a February massacre, I was asked to provide a list of stocks that I think will be good long term buys, and I provided a list of 10 such stocks, all with either good "fundies" but also good technical reasons for an immediate move. Some of these have been sold since (MO, BA, MRK, AAPL (sold and bought again for another good profit), and T, and today for the second time in those six months COO was sold (both times with pretty good profits), yet another five are still making new highs, POOL, SFD (added to the list in March to replace MO), and AGM did today, and AW in the last few days, IGT was added today after it was sold just few weeks back at $60 (failing to hold the June lows was a "signal to sell), and a very nice discount. So, don't use TA just for your trading account, use it for controlling your "core" account as well.
Zeev |
