I hope all of you had a nice weekend. Here I wanted to throw out few chart patterns. I wanted you to analyze them and post me a comment on the following
1) Would you buy this stock at current market price?
2) What is your stop loss strategy?
3) When do you take a profit?
I wanted to make sure that all you are educated to make well informed decision. Somehow, I am against giving random stock picks followed by a suggestion of when to buy and sell.
"When you feed person a fish, you solve his hunger problem for a day, but you teach him how to fish, you solve his hunger problem for his life"
This is my reason for this portal. To educate, to learn and leave a legacy.
2 comments:
I am glad that you are embarking on the vision of educating people to make a trading opportunity based on technicals. Please continue this vision and hopefully we all make even more money.
However techincial trading has some major contraindicatiors against it:
1. It requires a lot of monitoring since by definition it is "trading"
2. Traders (especially retail traders) have very little visibility on the way the market moves. This is specially applicable to Indian markets.
3. Most of techinical trades lose money even with the best strategies. I have even read that the hit rate is less than 1%.
My strategy has been a mid to long term hold and sell theory. I certainly hope that you have found the rosetta stone approach to minimizing loses while making good returns. I will check you strategy on a dummy trading account and see it's efficacy.
Hope to revert back with some good news.
MTB,
Here are my answer to your questions.
>> 1)It requires a lot of monitoring since by definition it is "trading"
Answer : It depends. If your time frame is long term (more than years), you can monitor the prices weekly. I am going to cover long term investment approach in my blog.
>> 2)Traders (especially retail traders) have very little visibility on the way the market moves. This is specially applicable to Indian markets.
Answer : Since technical analysis is based on the price action as well as pattern analysis, retail investor can filter out high volatile stock (which is created by insiders).
>> 3)Most of techinical trades lose money even with the best strategies. I have even read that the hit rate is less than 1%.
Answer : I have to disagree with this. I have seen successful technical traders who made their living in the stock market. May be these traders fall within your 1% category. Also that is the purpose of this blog. To educate more people to make wise decisions (to go above 1% category!!!).
Your long term strategy looks good. In near future, I will be covering more about how we marry both fundamental as well as technical analysis together.
Keep watching and thanks for the post.
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