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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (21829)7/31/2005 7:03:10 PM
From: Tapcon  Read Replies (1) of 78644
 
Spek,
FWIW, most of my investment life I've been an investor with an appreciation for both value and growth stocks. I had a nodding acquaintance with chart analysis, but never really studied it in earnest. Having been trained in economics, I usually looked at the forces driving future demand and supply.

But this year, I started reading dabum3's excellent thread on Strictly Buy and Sell Setups. He is a masterful teacher and has been providing daily commentary on his trigger, target and stop prices prior to executing his trades during the past 9 months. His expertise at reading the charts and explanations of what is going on behind the movements leaves no doubt that informed chart reading is a valuable tool. I'm a convert now and believe tgisprofit is correct that a combination of chart analysis and fundamentals provides a good strategy for managing risk in your investment choices. I daresay that if I had read some of the books dabum3 recommends when I was younger, I would have timed my entry and exit of many stocks much better.

I'm very much a neophyte in this type of chart analysis, but from what I've learned so far, you would be reducing the risk of investing in C if you wait until it gets out of its stage 4 downtrend. This isn't to say that you may not time it perfectly on catching a V-bottom. But the percentages are not usually with you on that type of move. Excellent chart readers provide a tool for managing risk.

PS: I've enjoyed your posts over the years.
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