Forum Archive Index - October 2003

["Morgy 40" <morgy40@hotmail.com>]

David

I am sorry to be on the other side once again in disagreeing with you but 
what a load of nonsense you are talking, surely you dont believe what you 
are saying ?. Let us look at it point for point.

1. Your predictable trading company scenario is a great TA trade, sure 
uptrend and predictable downturns Sell on trend break, would ideally suit a 
long term TA investor using a 50 week moving average, still gets dividends 
and is able to see when the company breaks down, total investment time 
spent, 1 minute per week. This is a common strategy for blue chip stocks and 
it would have got you out of AMP.  I have posted a 5 year AMP weely chart ( 
I hope this is long enough) for you to clearly see what I mean, note the 
trend break would have got you out with nearly all profits intact at 20.00 
per share (approx) or would you have preferred the romance of 4.00 per share 
?.

2. Are users of TA investment excluded from dividend and bonus issues , if 
so why ?.If you read my posts re RBD you would see the foolishness of that 
strategy. Can TA traders not read a dividend announcement ?.

3. You have an obsession with timeframes, if your goal is to make a million 
dollara in 5 years, wouldnt you use the method that is suited to your time 
commitments, i.e if it was your fulltime job you would be more aggressive 
and treat it like a business and learn ALL the skills available to reach 
your goal.
If you have a 5 year goal (longterm) surely you break it down to chewable 
bits ?, 30 days in a month (ave), 12 months to a year, 5 years to a goal.

4. I have never read a prospectus that has said this company is only for FA 
investors , TA traders need not apply, p.s we will compensate you for poor 
returns and low yields by throwing you a few bonus shares every now and 
again.

5. Drama orRomance ?, say what, dont you mean profit or poor returns.

I appreciate we have had a couple of exchanges before but if you keep 
peddling this nonsense then I can only reply, surely you work in the managed 
funds industry ?.

Regards

Morgy



>From: "David & Jill Stevenson" <djstevo@quicksilver.net.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: Re: Re: [sharechat] balance required. by macdunk Sorry Macdunk
>Date: Sat, 4 Oct 2003 14:01:02 +1200
>
>Partial agreement. However some companies lend their activities  better to 
>FA  analysis than others. A conventional trading company that lacks 
>charisma ie. does nothing but trade and organically grow does not offer an 
>investor opportunity to capitalise on better knowledge than another 
>investor simply because it is so predictable . All it will do is , 
>predicable to the day, produce market information eg 6 monthly trading 
>reports or ,as a spark of interest ,advise it has sacked it`s CEO Even that 
>  latter act may create a market heart murmur .However nothing to compare 
>with the frequent market moves of say  a swashbuckling GPG. and those moves 
>can be anticipated by the investor if he is astute and recognises timing or 
>when an idea has it`s dayThat company has surely proved itself over the 
>years by it`s results. Okay I can`t bolster my argument by saying the  
>market is full of investment companies lending themselves to FA. But in FA 
>you don`t need a multitude of companies . I accept TA has it`s place  and 
>it`s merit but, philosophically ,TA and FA are totally different realms. 
>Each individually caters for differing temperaments in the investor. Both 
>have their merits . It depends whether you want romance or drama.  It may 
>appear a worn out hobby horse of mine but an investment company is designed 
>for the FA investor . He will invest longer term than a TA and in larger 
>amounts to compensate for infrequency of transactions compared to the 
>TA.and  will receive dividends and  is assured of annual bonus issues to 
>further compensate even if nothing else happens... .TA traders operate very 
>much in the short term as opposed to FA who should not  invest unless they 
>are thoroughly familiar with a target company  inside out if they are going 
>to stick with it.. One would never guess that GPG is a hobby horse of mine. 
>It`s activities suit my nature to a T.
>                                                Regards
>
>                                                               David S.

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