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Strategies & Market Trends : Join stock club--Tang Fund -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (47)	6/18/1998 9:39:00 AM
From: Les H	Read Replies (1) \| Respond to of 145

You're distorting the poor performance of your fund by using equal share weighting. Most portfolios use equal dollar-weighting of portfolio components. You're skewing the results to the favor of the highest priced stock. The other ones are dogs. Tang writes: TraderX. Go to discuss your TA with the TA people, then you will know better. TA is based on charts, but the indicators are numbers derived from formula(mathematical). Not Geometry. Curves are not geometry. TA has to be precise or you can not make any decisions without the fundamentals. Your entry and exit points to trade stock has to be exact, based on breakout or breakdown. Any wishful thinking such as if and if not, has no place in TA. Until the curve shows a change, TA is useless. You just have resistance and support to go by. You can make decisions based on resistance and support, but that is not if or if not. Talk to some experienced TA people and they will tell you that TA is not accurate. You can not make money if TA can only hit 60% for you. Response: There you show your ignorance again. A trading system's profitability depends on its risk-reward ratio. If your average win makes 30% profit, and your average loss loses 10%, then you can make a profit even if your systems makes profitable picks only 30% of the time. Of course, if one picks junk stocks under $ 5 like yourself, it is very difficult to control risk to 10% --- very easy for an under $ 5 stock to slip 20-30% before being able to exit.