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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Chris G. who wrote (7686)	1/9/1998 10:23:00 AM
From: Richard Estes	Read Replies (4) \| Respond to of 12039

of course there is no way, we can see each other's screen or test results. We can't tell if you copied form correctly. and when you say results aren't good, often the qustion is, by what standard? Without TA, you buy just on stories, Va?ue, broker, etc. So people usually bought because they heard about a stock from some one else, or they bought the "name". When it went up they said great, but if it went down, they were at a loss. They bought on a basis of story, it hadn't changed. They had no reason to sell. They became "investors. The market doesn't care what you think or want, it talks to you by price and volume. That is the reason that TA trys to listen by measuring these things. You want a stock in a upward trend. Some ways to measure this is: ADX>30 VHF>.30 MACD(13,34,89)>0 Dahl>0 Aroonup>80 price over certain MAs Ibd RS>80 Now trend is there, you wait for basing or small pullback that would cause a signal to give you an entry, without breaking the trend. What if the system at this time causes a loss, well, don't let it exceed 8-12%, get out. You bought to go up, price is going down. Good money management would say don't put more than 10-15% in any one stock. your loss is 1-1.5% of your capital. For the true beginner, it probally is best to have left the market in Sept-OCT and been in money market funds. This game can take your money.