Certainly wasnt questioning the usefulness of the graph, quite the opposite. Just commenting on how it would be of additional use to someone who played the short side - potentially you have twice the upside.
a modified version of your normal charts to make it ultra simplistic
A basic TA system like this should be complusory for all who consider themselves serious investors and/or those who have serious % of their Net worth in the market
It needs to be included in a dummy's guide to investing.
Fortunately/unfortunately most investors and funds dont use this kind of system, which means it continues to work well.
“If you're worried about falling off the bike, you’d never get on.”
Certainly wasnt questioning the usefulness of the graph, quite the opposite. Just commenting on how it would be of additional use to someone who played the short side - potentially you have twice the upside.
I agree with you Legoman. Personaly I have every intention of short trading should the market do a reversal. I also intend to introduce Margin trading as well once I have grown my capital to a certain amount. I think once you have developed a workable system in a up treading market , it makes sense to turn this system upside down/back to front and use it should the maket start downtreading.
Who are you with dragonz? As far as i know no NZ online brokerage service permits shorting - so i presume you have gone full-service?
Im with cmc markets and direct broking. Should the market turn then I believe you can shop around the full service brokers to see if they have the share your wanting to short. Its one of the things I'll have to investigate. Probaly an Aussie based service would be best.
I don't short the Aus market, LM.
The chart is just as relevant for those that trade "long" only.
It tells us when to be be cautious, when to be in the market - and when to be out of it.
Gee Tricha you must be about the only person on ST who doesn't appreciate the effort that Phaedrus goes to let alone the merit of some basic TA.
What does it matter if it doesn't tell you tomorrow. From his chart if you chose not to act for a few days after the sell signal you would still be out ahead with the majority of your capital.
I have a buddy in the states whom never invests in stocks, and he has for quite some time told me to invest in Sectors instead.
Perhaps I should have listed to him..lol
Saying that, I never got his exact details for whom he was with (in the US) trading.
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Originally Posted by Lego_Man
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