Melissa,
One of my beliefs about following stocks and investing/trading in them is that one starts to get a feel for the stock. This happens over time, and you have to follow that specific stock for a while. When you get to that stage, which it appears you have with PSFT, I believe that you should not replace that with other instruments, such as TA. You can augment it with TA, but do not start using TA in its place.
This, of course is my belief, and the rationalization is as follows - each stock behaves differently. The company does different things, has different cycles and correlation to the rest of the market, different sets of people investing in it with different mentatilites, etc. When one follows the company for a while, the human mind creates a model of that behavior that triggers "gut-reactions". I do not think that TA can replace that. Anyway, that's my 2 cents worth. I have noticed this myself with a few stocks that I have followed now for years.
However, if you are just starting to look at a new stock, I think that TA and FA help you a lot because they try to quantify the model in the absence of the gut-check.
What do you think?
- Brian. |
