Forum Archive Index - November 2001

["Nick Kearney" <nickk@quicksilver.net.nz>]

good points...cracked me up with the hill walking!

 

NK

----- Original Message -----

From: nick

To: sharechat@sharechat.co.nz

Sent: Saturday, November 17, 2001 8:11 AM

Subject: Re: [sharechat] Something to think about for all you newbie chartists

       I agree that i think the article goes too far.  I am not

totally against technical analysis. In particular i think the use

of a stop to limit losses makes sound money management sense.

     The long term investor can still use basic T.A (ie 10 month MA)

To time entry.

    With a 10% stop the disasters you listed would of been avoided.

 I think her article is about short term trading using T.A and the costs

involved

           Brokerage             (1x buy/sell a week = apx 2500 pa)

           Capital gains tax    ( 33% of profit)

           Software              (apx 1000) + data feed

          Time                    hours per week

           Stress                 blood pressure 1000

           side effects         When walking in hills see double tops and fibonachi retracements.

           Result                ulcers , fixation with money , obsessed with market and broke

 

   Buy and hold,

          Brokerage         (4 buys per year   = 200)

          capital gains tax   none

          Dividends           apx 5% per annum

          Time                  few hours a week

          Result               contented, relaxed and .............broke

 

     Nick