Forum Archive Index - May 2004

[Phaedrus <Phaedrus@techemail.com>]

Gavin,
      You ask "if there are particular indicators to use that are better than 
others" when buying and selling.
 The idea is to select indicators that are appropriate to your chosen methods, 
timeframe and aims. Your question is a little like asking what the best tools 
are, without specifying the job. 
 There are many, many ways of approaching the market. At one extreme you have 
very longterm investors, at the other extreme you have intraday traders. It is 
self evident that very different methods and indicators are required depending 
on where you lie on this continuum. With longer time periods, fundamentals 
become more important, with shorter time periods they are less relevant and 
technical indicators more appropriate.
 The answer to your second question "What indicators would you use in a more 
speculative stock eg NOG" again depends on your aims. It is quite possible to 
invest in "speculative" stocks, just as it is possible to speculate on 
blue-chip stocks - the methods used to select entry and exit points would be 
very different, though. 
 Backtesting may well tell you that the best oscillator to use on NOG is, for 
example, the RSI. This would be of little use though if you were a trend trader 
- oscillators generally give a string of premature sell signals when applied to 
stocks that are in an uptrend.
 Whatever method you settle on, you need to be aware of its strengths and 
weaknesses -  its characteristics - before you begin using it.
 Read lots of books and don't waste time looking for the holy grail, the silver 
bullet, the ideal indicator, the perfect system. There's no such thing.

                  Phaedrus.
 

_____________________________________________________________
Are you a Techie? Get Your Free Tech Email Address Now! Visit 
http://www.TechEmail.com

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