Forum Archive Index - September 2003

["trader 100" <trader_100@hotmail.com>]

Phaedrus,

I am always interested in learning more from you so here are a number of 
questions about your recent post and a bit of background on where I am 
coming from.

Like you I started investing by basing my decisions solely on FA.  For the 
reasons you have identified over the years (plus a few others) I become 
disillusioned with this approach.  This lead me to TA and through the 
process of developing a system that seemed to fit my personality, paper 
trading the system and then finally trading for real.  During the time that 
I have used TA I have based my decisions solely on TA thereby ignoring 
company fundamentals.  I too have noticed that my bigger losers tend to be 
companies with poorer fundamentals.

I have come to the point of combining TA and FA but am unsure about the best 
way to do it.  If TA is at one end of the spectrum and FA is at the other I 
believe that I will always be more comfortable closer to the TA end.  One 
option is therefore running my filters in Metastock to determine potential 
trades from a TA perspective and then checking the fundamentals on a website 
such as:

http://investor.ninemsn.com.au/investor/shares/research

(I tend to trade mostly ASX stocks).  The problem with this is that I 
believe I will find it very tempting to simply follow the TA signal 
(especially if it is very strong) and ignore the fundamentals.  The other 
option is obviously creating a list of potential trades based on 
fundamentals and then running a TA filter over these candidates.  This would 
be my preferred option but I am unsure how to do it without manually going 
through each of the 2000 ASX stocks on the website above.  This would need 
to be updated from time to time so the task would seem to be a big one.  
Have you got any ideas on this?

Lastly, what fundamental criteria have you found to be useful for separating 
out the “good” from the “bad”?

I’d appreciate your comments.

Regards,

T100.

_________________________________________________________________
Check out the Xtra gaming servers at  http://xtramsn.co.nz/gaming !


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/