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

To: Arthur Tang who wrote (1002)	6/22/1998 9:25:00 AM
From: David Meyer	Respond to of 1471

Mr. Tang - I so impressed, You are sharper than income tax.

To: Arthur Tang who wrote (1002)	6/22/1998 9:33:00 AM
From: Les H	Read Replies (2) \| Respond to of 1471

They're such good stock and cash pool that 2 or 3 of the securities in the Tang Fund can't be purchased on margin. Maybe I missed the point, your metaphor for securities is billiards, not swimming pools. >No one uses TA for long term investments, each day the chart changes >and gives a different indication. Fundamentals are only good for 3 >month, then the earnings changes. Value analysis seldom include >lawsuit liabilities. These are more important to know than >indicators or ifs and if nots. If you think you can make money 100% >of the time with TA, go ahead and do some real investments instead of >paper investing. You will lose your shirt off your back. Charts can change but trends remain in effect. So inspecting the charts regularly can identify potential changes in trend. The value of fundamental information depends on the company's business and its predictability, and its management. Different businesses have different reliability of forecasting because of the nature of the business and the economic factors affecting it. Drug companies generally have better earnings predicability, also referred to as visibility, as opposed to semiconductor companies. For businesses in secular trends, fundamentals tend to stay in force for quite a long time --- just check G, GE, DIS, etc. No strategy can be successful 100% of the time. Of course, with your impeccable credentials of picking Bre-X and STRR, who's to argue with your success. I prefer to buy wallpaper at the store rather than from my stockbroker. Value analysis can incorporate assets and liailities that are non-core business such as litigation. You're confusing technical analysis with trading plans. The purpose of technical analysis is to analyze supply and demand. The purpose of the trading plan is to maximize profit and minimize losses. The trading plan or investment plan, whichever you prefer, can incorporate methodologies such as technical analysis to achieve those goals. But in your case, since you buy mainly using message boards and tips, technical analysis will not be able to rescue you.