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Strategies & Market Trends : Technical Analysis - Beginners

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To: Dale Wingo who wrote (8633)9/17/1998 8:53:00 PM
From: Richard Estes  Read Replies (1) of 12039
 
1. That is what indicators tell us, a simple moving average give trend. Our tool boxes are full of trend indicators. You wait until the one you decided to use gives a signal. A up trend of a 89 period MA would be sufficent for most. Simply because a stock was going up in June doesn't mean it will go up at all, through next june. Wait for the signal, don't outguess your system.

2. optimization has little purpose, except to allow you to get in the ballpark for values. You should be looking for a system that matches your mindset and does well on 80% of the stocks. You have to trust it, if you trade it. After looking at 200-500 stocks of all shapes and sizes, you should have some idea. There is something to be said for looking at 20 stocks, but it is very limiting. You sure need to learn to short or go to cash a lot. By limiting your view, you are enslaved to their moves.
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