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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (4621)	1/23/1999 2:26:00 PM
From: Monty Lenard	Read Replies (1) \| Respond to of 99985

"There is a lot to argue about which is right or wrong, but I was proven in teh past that going only based on TA you can loose substantial money." Shouldn't happen if you use the right descipline. Will happen if you don't. i.e. I have never traded an internet stock in my life but Thursday AMZN gapped down, drew a Doji Star and had a 50% retracement. From purely a TA perspective, it was a no brainer and I bought it at the close 105 1/8 and sold it Friday morning at about 11:00 AM for a very nice profit based STRICKLY ON TA. The reason TA does not work for many is that they cannot for some reason exercise the descipline required. They forget they bought or sold it on TA and start trying to justify their position using FA after it has violated their TA. When this happens one sets oneself up for a loss or as a LONG TERM INVESTOR in a loser. (BTW, been there done that) <GG> If one is investing based on FA then it is ok to us TA for entry and exits but one had best remember what they are doing....trading or investing. "Now my logic is that those folks want to buy on the cheap and let prices drift to lows and then collect the shares needed. they are judged for their performance by closing prices." I agree with you on this at CERTAIN times but not on a day in day out basis. "Many WS and big funds know quite well TA and use it to their advantage in buying on the cheap." No question about that. One needs to take this into consideration when setting stops etc. "The huge inflow of money and full enployement gives me the problem for a BK." I am not saying we are at the BK yet. In fact I entered some long positions Friday PM and looking at a couple of more for Monday if they act as they should at the open but I will sure be a speculator at these levels and not an investor. "The huge inflow of money and full enployement gives me the problem for a BK" I helped the money inflow numbers myself last week into my retirement account but it went into mm account. But all this is me and I sure hope most disagree because that will give me more confidence that I am doing the right thing. <VBG> Monty