Forum Archive Index - October 2003

["Cristine Kerr" <criskerr@optusnet.com.au>]

Morning all,

 

Following a recent exchange with Phyllis, I thought the following extract from my email might be of interest, especially to TA traders.

 

The extract refers to Mariner (MFI) and associated stocks which had massive climbs earlier this year.

 

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' ... In terms of trading styles, Mariner (MFI) presents an excellent example of where TA would have triumphed over (stomped all over) my FA style. I'm sure many TA traders made a lot of money on Mariner and associated stocks. ... '

 

' ... I have no way of knowing if I'm typical of an FA trader, but I wouldn't have taken on the stock based on the information I was able/unable to access. ... (Thinking out loud. This may be a good example of TA over FA to share in the forum.) ... '

 

' ... Hypothetically, even if I did use graphs, it would be in my nature to research what it was I was investing in, and why the stock was moving before doing anything, therefore; I don't think I"m capable of using and relying on graphs alone and would still have come to the same conclusion. ... '

 

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It is not my intent to place one style above the other as there are advantages of both and as well all know, different strokes for different folks.

 

Just thinking out loud again ...

 

1) A pure TA trader may have acted (and profited) on graphs and signals alone.

 

2) An FA trader may have picked the stocks as research targets based on the high profile and track record of the key executive linked to them all. Within the mix of FA traders who may have researched, I anticipate some would have bought and others not dependent upon how well research findings 'fitted' with their own trading objectives, principles, beliefs, risk tolerance, level of experience, etc.

 

3) A trader who mixes both may have picked up signals from graphs, then researched and acted (or not acted) as per Item 2 above.

 

Regards,

Cris