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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (1646)	4/22/1999 7:01:00 PM
From: Adelantado	Read Replies (3) \| Respond to of 1729

I didn't finish the shaman story: After the shaman throws the knuckle bones into the circle to predict the course of the illness, one of two things will happen: the person will get better in which case the shaman is a hero and the person bestows great thanks in terms of gifts on this great sucessful soothslayer; on the other hand, the person may die in which case the shaman will tell the world that the person was not a true believer and deserved to die. People who rely upon "techincal" formations for their trades follow the same logic: if they are sucessful, it is because of the great predictor of the chart forcast by he TA god; but if the investor fails, then the person didn't use TA correctly. While people may be comforted by head and sholders, and the rest, the reality is that these formations are only seen by hindsight, and the times that they failed are ignored or called by another name. I suggest that the times that TA is sucessful coincides in the long run with securities having excellent fundamentals. Lastly, for folks who think this is a slam on day-trading; it isn't. Its a slam on TA. Day trading can be rewarding only if the day-trader is working with knowledge based upon study as to what value to place on securities. For that matter, it doesn't matter whether the trades are hourly, daily, weekly, monthly or yearly.What is important is the value the market places on the security and your value. If the market needs correction you will be greatly rewarded by helping to correct the market. If you are not rewarded, you need to correct your ability to evaulate the value of the security or go back to your day job. Joe