Derek,
No No No, you misunderstand. If you are a long term holder...by all means hold on. But...let's say you want to sell, or buy...and you want to maximize your exit point or entry point. TA will help you do that.
It helped me buy Intel at 70. Sure beats buying at 102 if you know what I mean.
Another scenario might go like this...let's say you think Intel's long term prospects are great and you want to add shares as you get the money to do so. You can dollar cost average, value cost average when you get the money or you can accumulate the money and use TA to time the entry points.
Contrary to what some say, TA does have predictive value...but nothing that deals with the future is perfect. If that was the case I'd just pick up Sundays paper in advance and buy a lotto ticket.
For instance...
On the other hand, if you had a TA program, you could set your
Bollinger bands to 90,3 and with about a 95% decree of certainty you'd know that when a security penetrates the upper band that you are going to get a pullback or consolidation within a few days. In the case of Intel, the upper band was at 95.88 and the high yesterday was 96...and voila...Intel pulled back a few points. Now, IF, you wanted to sell, and I'm not saying you should...you might use that as a timing tool.
Jim |
