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.

Technology Stocks : Netscape -- Giant Killer or Flash in the Pan? -- Ignore unavailable to you. Want to Upgrade?

To: gary neil baurer who wrote (3801)	7/11/1998 3:58:00 AM
From: hstein	Read Replies (1) \| Respond to of 4903

There are 3 forms of random walk theory; Weak, semi-strong, strong form. Weak form theorizes that past trends do not predict future trends therefore technical analysis is invalid. Many studies disprove this form, such as the January effect. Although studies have shown some trends, these trends are minor and therefore difficult to take advantage of. Most analysts today use a mixture of fundemental and technical analysis, with the focus on fundemental. I to like Netscape for a variety of reasons. "Securities Analysis" by Graham and Dodd is not bad. For Technical Anaysis try "Technical Analysis of Stock Trends" sixth edition by Edwards and Magee.

To: gary neil baurer who wrote (3801)	7/11/1998 12:28:00 PM
From: E. Graphs	Read Replies (1) \| Respond to of 4903

OT Gary, I agree, "Technical Analysis of Stock Trends" is the one reference you should own, but there are a lot of other good books on TA now. The problem is that they are getting expensive. Still, you can make a list from browsing the bookstore and then order them at the library; my library takes two days to get just about any book. There are TA vs FA arguments all over S.I. There are probably whole threads on the issue. I don't get involved in these debates because I feel that most of the TA bashing comes from those who don't even know how to use it, can't understand it, or are in denial. >:) You said: >>I would like to think that seeing a trend in how a company does business or will change an industry (some kind of unique insight) will prevail in the market.<< Yes, but how will you see when this trend is noticed by Wall Street? I'm in the camp that says it will show up on the chart before you hear anything much about it in the news. TA is a way to see the subtle changes in sentiment about the stock. All I know is what works for me, and following technical trends works just fine. Good Luck Trading! E!