Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: Libbyt who wrote (1927)	1/23/2005 8:43:48 AM
From: chowder	Read Replies (1) \| Respond to of 13449

>>> With the stocks and charts that you post, do you look at some of the basic information about the company.....or do you only look at the chart? <<< Libbyt, I only look at the chart. Nothing else matters to me. Others may find other information useful in helping them pick a stock, but I don't. >>> I'm not sure if you read this article, printed at the beginning of the month? With the end of the month, IMO it should be interesting to see if this strategy will be a winning one for those who "went long the SHO list". <<< I don't usually read articles on a company. It's a very rare occasion when I do. By the time I read an article, the price has already moved anyway. And a lot of times, an article has a certain bias that was planted by whoever provided the information to begin with. No articles for me. I don't look at financial statements either. Most of them aren't correct anyway. I lost count of how many class action suits I could add my name to because companies provided false information. Any accountant can tell you they put a charge here, place a deferment there, the numbers are never a true picture of the companies financial situation. And, even if it comes close, it's a picture of past results. How does that help us in the next 2-5 trading days? For the time frame in which I trade, the only true picture of what a company is worth, is the chart. The chart doesn't lie. It shows you exactly what is going on and you only have to make a decision that covers the next 2-5 days. In my case, in the past, the fundamentals kept me in trades I should have been out of. When I saw a price drop in a stock I owned, and I thought the company had good fundamentals, I would hold on even though the price was dropping. What good are fundamentals if the price is going the wrong way? The price may turn around, but when? That's what technical analysts are concerned with. The when! I recall about 4 years ago when Big Dog started the Boom Boom Room thread. Everyone was hollering about the great fundamentals of the oil sector. His Dogginess listed a group of oil drilling stocks to monitor on his thread. He didn't hold these stocks personally, they were just a portfolio to monitor. Four years later, some of those stocks are still showing a loss, although they are close to showing a profit. That's four years of dead money! Let's assume that portfolio had $50K invested. If one were to make just 8% per year over the last four years, as opposed to being underwater, that portfolio would now be showing a 36% profit. What are the odds of the energy sector driving another 36% higher in a very short time and making up for lost ground? And I'm just using a low 8% annualized return. If it were 12%, 15% or more, you'd never make up for the four years you lost. And that's why 80% of fund managers and 95% of retail investors underperform the markets. They can't overcome the drawdowns they take when they hold long term. The fundamentals hold me back. I do better without them. Others may not. They must do what works for them. dabum