Forum Archive Index - November 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

Thanks David!

 

Yes, I remember the tumultuous period when Phaedrus made his entry on Sharechat and it became a free- for- all between people who backed Fund. analysis and those who backed TA.

 

I supported Phaedrus and invited him to write part of the LTI series, which he did.

 

There is a lot of destructive behaviour on some chat sites and people use abuse to get their point across. That is the way, I saw it! And they were quite prepared to sacrifice "treasures " with sound ideas, which did'nt suit them! 

 

The rest is history. I use fundamental (I hate that word) theory to pick my heavily discounted or forgotten-mainly- good quality stocks and don't look at charts too often except for an entry point and even then, I don't necessarily try to move in "at the bottom".

 

As I am a longer term investor, I can't always move out of stocks when I want to. But, when I am entitled to do so, sure, I look at a chart or I don't when I have to use the capital raised to move in quickly into another highly desirable stock.

 

I studied successful traders and they seem to know a great deal about Fund. analysis. They need it to initially select a good stock to trade on.

 

 And then, they stay with the stock, catching the uptrend, sell, wait for the correction and then catch the next uptrend. These people are not two bob traders and won't select "rubbish" stocks.

 

Normally, they may follow a number of stocks. And they study the Announcements and results!

 

As to Brokers, I have been invited by some to look at their operations and sure, you will find them using charts alright! And so are institutions!

 

The flip side is that more than ever, investments are turned over at the blink of an eye, making trading more volatile.

 

That is because the larger institutions demand better returns within the shortest time: They need to stay ahead of the competition! 

 

Unlike before, they don't stay with a company for long if the charts say that it it time to sell. People still underestimate the cumulative effect of this increased volatility.

 

We are now well past the point where TA needs to be an emotive issue; it is up to the investor concerned to adopt systems they are comfortable with.

 

The ultimate outcome of a strategy is to make a dollar and this can be done either graciously or with a lot of angst!

 

Gerry